April 24, 2013
Rush Enterprises, Inc. posted a first quarter income of $13.5 million, despite a drop in the company’s heavy truck sales.
“As expected, declines in energy sector activity resulted in a decrease of our new Class 8 truck deliveries,” Rusty Rush, Chief Executive Officer and President of Rush Enterprises, Inc., says. “In addition, U.S. Class 8 truck sales were well below normal replacement levels in the first quarter. However, our quoting activity remains strong, which should lead to stronger retail sales later this year.”
Sales of new and used commercial units totaled $489.6 million versus $551.9 million during the same month last year. Lease and rental incomes rose to $30.1 million, up from $23.4 million the year before. Finance and Insurance, at $3.1 million, was flat.
Heavy-duty vehicle sales totaled $287.1 million against $384.2 million during the first quarter of 2012.
Industry experts forecast U.S. Class 8 retail truck sales to remain flat to 2012 at 198,000 units, but Rush expects increased activity in the market to prod buying activity as the year drags on.
“We believe that steady U.S. Class 8 order intake over the past several months combined with increased activity in residential construction in key regions of the country will likely result in increased Class 8 retail truck deliveries beginning in the second half of 2013,” he says. “We are encouraged by Navistar’s successful launch of the 15-liter Cummins ISX engine in the first quarter and the recent EPA approval of their MaxxForce 13-liter engine using SCR aftertreatment technology. We expect this to have a positive impact for our Navistar Division during the second half of 2013.”
Rush’s Class 4-7 medium-duty sales increased 26 percent over the first quarter of 2012, outpacing the U. S. Class 4-7 market, which decreased 2 percent.
“U.S. Class 4-7 retail sales are expected to reach 182,000 units, up 11 percent over 2012,” Rush added.
Rush’s sales of medium-duty trucks and buses jumped to $132.8 million, up from $100.7 million the year before. New light duty vehicle sales rose to $11.9 million verus $9.2 million in Q1 2o12.
“Light duty truck sales were also up 43 percent compared to the first quarter of 2012, as a result of continued efforts at our Ford franchises,” Rush added. “Our used truck sales also increased, up 13 percent over the first quarter of 2012.”
“This is the result of solid execution by our medium-duty franchises across the country, including continued good performance from our Navistar Division,” Rush says.
Aftermarket solutions accounted for approximately 64 percent of the dealership network’s total gross profit in the first quarter of 2013, with parts, service and body shop revenues reaching a new record quarterly high.