Rush Enterprises said its second-quarter profit declined from a year ago on lower sales and a retirement charge, and announced its intention to buy truck dealerships in three states.
Rush, San Antonio, reported net income of $5.6 million, or 14 cents a share, down from $17.4 million, or 44 cents, a year ago. Sales fell 6% to $789.7 million.
The company took a $10.8 million charge in the quarter related to the retirement of company chairman and founder W. Marvin Rush, which was announced in May. The charge reduced its net income by $6.6 million, or 16 cents a share.
“A lackluster new truck sales environment and increased overhead . . . made this a tough quarter,” Chairman and CEO W.M. “Rusty” Rush said in a statement.
Its Class 8 truck sales fell 26% from a year ago, while Classes 4-7 medium-duty sales slipped 7%. Light-duty truck sales rose 56%.
Rush Enterprises is the only major publicly traded U.S. truck dealership, specializing in Peterbilt and Navistar International Corp. Class 8 tractors.
The company, which completed truck dealership acquisitions in North Carolina and Ohio in the second quarter, said it will buy dealer locations in Kansas, Missouri and Virginia.
It signed an agreement with Midwest Truck Sales to acquire locations in St. Peters and St. Louis, Mo. and Olathe, Kan., which it expects to complete by the end of July.
It also agreed with TransAuthority to buy International truck dealerships in Richmond and Suffolk, Va., and parts and service locations in Fredericksburg and Chester, Va. Those transactions will be complete in the fall, Rush said.
The Missouri operations offer truck sales, parts and service for International trucks, and the Kansas location offers truck sales, parts and service capabilities for Hino and Isuzu trucks and parts and service support for Mitsubishi Fuso trucks.
