February 13, 2013
Rush, which operates one of the largest networks of commercial vehicle dealerships in North America, reported a net income of $62.5 million on record annual revenues of $3.1 billion in 2012 – an 11 percent increase in net income over 2011. The year’s fourth quarter wasn’t nearly as kind, with gross revenues totaling $732.3 million, a 5.6 percent decrease from gross revenues of $776.1 million reported in 4Q 2011.
The company announced its aftermarket services accounted for 63.4 percent of the company’s total gross profits in 2012 with parts, service and body shop revenues reaching a new record of $817.3 million, up 21 percent over 2011.
In 2012, Rush’s Class 8 retail sales increased by 10 percent over 2011, and accounted for 5 percent of all Class 8 retail truck units sold in the U.S.
“Our strong truck sales are the direct result of our ability to successfully offer a diverse product line-up across a wide variety of market segments across a large geographic network,” Rusty Rush, Chief Executive Officer and President of Rush Enterprises, Inc. says.
The company expects further growth this year, estimating Class 8 retail sales in the U.S. will range from 198,000 to 208,000 units in 2013.
“We continue to see customer confidence increasing in certain segments of the economy, such as residential construction,” Rush adds. “We expect that the stronger order intake experienced during the past several months and implementation and customer acceptance of Navistar’s engine strategy will begin to drive increased new truck deliveries beginning in the second quarter. We believe this improvement should continue throughout 2013 and into 2014.”
Rush’s U.S. Class 4-7 medium-duty truck sales reached 7,126 units in 2012, up 30 percent over 2011, and accounted for 4.3 percent of the U.S. Class 4-7 market.
“Similarly, light-duty unit sales were up 35 percent over the previous year due to the continued success of our Ford franchises and our ability to service existing heavy- and medium-duty customers with light-duty vehicles,” Rush added.
The company also announced Wednesday that its Board of Directors approved a stock repurchase program authorizing the Company to repurchase, from time to time in the next year, up to an aggregate of $40 million of its shares of Class A common stock.