Rush's Net Income, Revenue Spike on Aftermarket Gains, Vocational Sales
Truck dealership Rush Enterprises Inc. reported a second-quarter spike in net income and revenue due to strong demand for vocational trucks.
For the period ended June 30, net income jumped to $22 million, or 54 cents per share, compared with $10.8 million, or 27 cents, in the year-earlier quarter.
Revenue climbed to $1.2 billion, compared with $1 billion in the 2016 quarter.
“Continued growth in the housing and construction sectors, improvement in the energy sector and general economic improvement across the country contributed to our strong financial performance this quarter,” W.M. “Rusty” Rush, the company’s chairman, CEO and president said in a statement. “We remained focused on our long-term growth goals, which include expansion of our all-makes parts business, advanced vehicle technologies, and alternative fuel solutions.”
Aftermarket services accounted for 64.4% of its total gross profits, with parts, service and body shop revenues up 11.5%, compared the 2016 period, according to the San Antonio-based company.
Rush’s Class 8 sales increased 29.3% in the quarter, compared with the second quarter of 2016, and accounted for 6.9% of the U.S. Class 8 truck market.
Rush said U.S. Class 8 retail sales were 48,771 units in the second quarter, down 8.2% over the same period last year, according to ACT Research Co.
Rush’s Classes 4-7 medium-duty sales increased 10.1% year-over-year, accounting for 4.9% of the total U.S. market. U.S. Class 4-7 retail sales were 62,618 units in the period, up 9.2% over the year-earlier quarter.
