Rush Enterprises’ 1Q Profit Gains on Higher Truck Sales
Truck dealership chain Rush Enterprises’ first-quarter net income rose as its Class 8 truck sales jumped more than 50% year-over-year.
Net income rose to $16.8 million, or 41 cents per share, from $12 million, or 30 cents, a year ago, San Antonio-based Rush reported. Revenue rose 24.5% to $1.19 billion, including a 33% jump in new and used truck sales to $800.2 million.
“We are extremely pleased with our strong financial performance this quarter despite a significant impact to Class 8 truck sales due to reduced activity in the energy sector,” Chairman and CEO W.M. “Rusty” Rush said in a statement.
Rush’s Class 8 sales increased 52% over a year ago, which it said accounted for 7.2% of the U.S. Class 8 truck market.
“We saw a significant negative impact from reduced activity in the energy sector to Class 8 truck sales this quarter, but we were able to offset this decline with incremental sales to mid- and large-size over-the-road fleets whose businesses primarily serve consumer retail markets,” Rush said. “Steady demand continued from vocational customers operating in the construction segment as well.”
Medium-duty sales in Classes 4-7 increased 37%, accounting for 5.6% of the U.S. market, which “was driven by was driven by deliveries to several large leasing companies along with our continued ability to offer ready-to-roll equipment to vocational operators supporting infrastructure projects taking place throughout the country,” Rush said.
Aftermarket services accounted for about 63% of total gross profit, with parts, service and body shop revenue up 9.1% from a year ago to $337 million.
Rush sells Peterbilt Motors Co. and Navistar International Corp. brand heavy-duty trucks in addition to medium-duty trucks from Hino, Isuzu and Ford.
