Rush sales, profits sink in second quarter
Rush Enterprises, Inc. Wednesday announced for the quarter ending June 30, 2013, the company’s net income slid to $5.6 million.
That’s down significantly from the $17.4 million posted last year.
“A lackluster new truck sales environment and increased overhead related to substantial investments made to support the continued growth of our organization made this a tough quarter,” says W. M. “Rusty” Rush, chairman, CEO and president of Rush Enterprises, Inc.
“I recognize the additional level of commitment extended by our employees as we continue to expand our network of Rush Truck Centers and implement new technologies to ensure we provide our customers with superior service. I believe the investments we have made are necessary to the successful achievement of our long-term strategic plan and would like to thank all of our employees for their contributions to our continued growth.”
In the second quarter, Rush’s Class 8 retail sales — which accounted for 4.4 percent of the U.S. market — decreased by 26 percent over the same time period in 2012.
Rush’s Class 4-7 medium-duty sales, which accounted for 4.2 percent of the total U.S. market, decreased 7 percent over the second quarter of 2012.
“As expected, both our heavy- and medium-duty new truck sales remained relatively flat compared to first quarter new truck sales,” Rush says. “We expect only a slight increase in our Class 8 retail sales through the third quarter due to continued decreased activity in the energy sector and some of our large fleet customers delaying new truck purchases. Medium-duty retail truck sales are expected to remain healthy, with pockets of strength in the bus, residential construction and large fleet segments. We remain encouraged by Navistar’s progress in their engine transition strategy and expect that it will translate into improving truck sales for our Navistar Division going forward.”
Industry forecasts predict U. S. Class 8 retail sales will reach 196,700 units by year’s end. Experts also forecast U. S. Class 4-7 retail sales to be at 183,000 units in 2013. But Rush isn’t optimistic.
“Although some indicators show signs of improvement, we believe that Class 8 retail sales may fall short of current industry estimates,” Rush says.
In the second quarter, the company’s gross revenues totaled $789.7 million, a 6 percent decrease from gross revenues of $835.8 million reported for the second quarter ended June 30, 2012.
The company says it delivered 2,088 new heavy-duty trucks, 2,001 new medium-duty commercial vehicles and 1,518 used commercial vehicles during the second quarter of 2013, compared to 2,813 new heavy-duty trucks, 2,141 new medium-duty commercial vehicles and 1,242 used commercial vehicles during the second quarter of 2012.
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