Rush Enterprises 3Q Income Down 15% on Energy Sector Woes
Rush Enterprises Inc., a multistate network of truck dealerships and related services, reported third-quarter net income fell 15% year-over year as sharp declines in the energy sector cut into sales of related Class 8 trucks and aftermarket services.
Net income slipped to $19.9 million, or 48 cents per share, compared with $23.5 million, or 57 cents per share, in the year-earlier period. Revenues rose 4.3% to $1.294 billion from $1.241 billion in the 2014 period.
“As expected, declines in energy sector activity continue to have a negative impact on Class 8 truck sales and aftermarket revenues. However, we were able to partially offset this impact through strong Class 4-7 truck sales, incremental large-fleet business and aftermarket services in other regions of the country.” Chairman and CEO W.M. “Rusty” Rush said in a statement.
Jamie Cook, an analyst with Credit Suisse, said in a note, that Rush “continues to execute well in a challenging market given continued energy headwinds and given increased evidence 2015 is the peak [of Class 8 sales in this cycle].”
Rush said it operates 121 dealerships in 21 states and sells Peterbilt Motors Co. and Navistar International Corp. brand heavy-duty trucks in addition to medium-duty trucks from Hino, Isuzu and Ford.
