Rush’s 1Q Income Declines

Truck dealership Rush Enterprises’ first-quarter income fell from a year ago as heavy-duty truck sales declined, but its medium- and light-duty sales rose, and parts and body shop revenue reached a quarterly record.

Net income fell to $13.5 million, or 34 cents per share, from $15.9 million, or 40 cents, in last year’s first quarter. Sales slipped 2.6% to $756.8 million.

Rush sold 2,065 new Class 8 trucks in the quarter, down from 2,738 a year ago. Its Class 8 sales accounted for 5.2% of the U.S. heavy-duty truck market, the company said.

“As expected, declines in energy sector activity resulted in a decrease of our new Class 8 truck deliveries,” CEO W.M. “Rusty” Rush said in a statement.

“Sales were well below normal replacement levels in the first quarter [but] our quoting activity remains strong, which should lead to stronger retail sales later this year,” he said.

The company said its medium-duty Class 4-7 truck sales jumped 26% and light-duty truck sales soared 43%.

Rush delivered 1,954 new medium-duty trucks in the quarter, up from 1,556 a year ago, and 395 new light-duty trucks, up from 277 units. It sold 1,414 used trucks, up from 1,252 a year ago.

Parts, service and body shop sales revenue rose to $231.5 million, from $196.6 million a year ago.

Rush Enterprises is the only major publicly traded U.S. truck dealership, specializing in Peterbilt and Navistar Class 8 tractors. Last year, Rush bought several Navistar dealerships in Ohio.

Rusty Rush said the company was “encouraged by Navistar’s successful launch of the 15-liter Cummins ISX engine and the recent EPA approval of [Navistar’s] MaxxForce 13-liter engine. We expect this to have a positive impact for our Navistar division during the second half of 2013.”