Rush Enterprises’ Income Jumps on Higher Truck Sales
Truck dealership Rush Enterprises said its fourth-quarter and full-year profit and revenue jumped on higher truck sales.
Fourth-quarter operating income was 19.4 million, or 50 cents a share, more than double the $9.2 million, or 24 cents, a year earlier. Revenue rose gross 67.6% to $776.1 million.
Full-year operating income rose to $55.2 million, or $1.42 per share, from $24.6 million, or 64 cents, in 2010. Revenue jumped 72% to $2.6 billion.
Parts, service and body shop revenue was $176.7 million in the quarter, compared with $132.8 million in the fourth quarter of 2010.
Aftermarket services including parts, service and body shop revenue accounted for about 63% of the company full-year gross profit.
Rush delivered 2,872 new heavy-duty trucks in the quarter, up from 1,681 a year ago; 1,711 new medium-duty trucks, up from 780; and 1,215 used trucks, up from 987 a year ago.
For the year, it delivered 9,052 new heavy-duty trucks, up from 4,746 a year ago; 5,469 new medium-duty trucks, up from 2,820; and 4,649 used trucks, up from 3,461.
Rush’s Class 8 retail sales rose 91% over 2010, outpacing the U.S. Class 8 truck market, which rose by 58%, and its Class 8 sales accounted for 5.2% of the total U.S. market in 2011.
“Increased Class 8 truck sales were primarily the result of continued strong demand from our energy sector customers and replacement purchases by large fleets,” CEO W.M. “Rusty” Rush said in a statement.
Medium-duty sales rose 94% over 2010, and Rush said its medium-duty sales accounted for 3.8% of all U.S. Class 4-7 retail sales in 2011.
Rush said it expects total U.S. heavy-duty sales to reach of 200,000 to 215,000 units in 2012, slightly above historical replacement levels.
Medium-duty Class 4-7 sales will reach about 163,000 units this year, a 13% increase over 2011.
