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Rush Enterprises reports third quarter results
By Successful Dealer Staff
Rush Enterprises, Inc. announced results for the third quarter ended September 30, 2009. In the third quarter ended September 30, 2009, the company’s gross revenues totaled $302.4 million, a 26.9 pecent decrease from gross revenues of $413.7 million reported for the third quarter ended September 30, 2008. Net income for the third quarter ended September 30, 2009, was $3.0 million, or $0.08 per diluted share, compared with net income of $8.0 million, or $0.21 per diluted share, in the third quarter ended September 30, 2008.
The company’s truck segment recorded revenues of $289.8 million in the third quarter of 2009, compared to $392.5 million in the third quarter of 2008. The company delivered 1,030 new heavy-duty trucks, 637 new medium-duty trucks and 760 used trucks during the third quarter of 2009, compared to 1,350 new heavy-duty trucks, 919 new medium-duty trucks and 936 used trucks in the third quarter of 2008. Parts, service and body shop sales revenue was $96.0 million in the third quarter of 2009, compared to $116.3 million in the third quarter of 2008.
W. Marvin Rush, chairman of Rush Enterprises, Inc., said, “This truck market downturn is the toughest and longest that I have experienced in 45 years in the truck dealership business. The third quarter provided no relief from depressed truck and aftermarket sales markets. Yet once again, I am proud to report that even in the face of this extremely difficult environment, Rush Enterprises, Inc. was able to achieve a profitable third quarter. I remain proud of the employees of this company, who have continued to control expenses yet maintain a high level of customer service.”
W. M. “Rusty” Rush, president and chief executive officer of Rush Enterprises, Inc., added, “Rush Class 8 truck deliveries increased this quarter over the second quarter of 2009 as several large fleet customers took delivery of trucks. This helped mitigate the effect of continued depressed U.S. Class 8 retail truck sales, which were down 33 percent over the third quarter of 2008, while Rush truck sales were down only 24 percent for the same time period. In addition, we continue to lead the commercial vehicle market as a provider of alternate fuel trucks, buses and services, and our ability to effectively serve municipalities significantly contributed to our overall profitability this quarter.
“We do not, however, anticipate a significant truck pre-buy to occur in the fourth quarter of this year as lingering depressed conditions in the overall economy and tight credit continued to negatively impact freight movement, causing continued excess capacity and depressed trade values. These factors have forced both vocational and fleet buyers to lengthen their replacement cycles beyond historical norms, most likely extending any substantial upturn in new truck purchases well into the second half of 2010,” he said.
“Aftermarket parts, service and body shop sales were negatively impacted by excess capacity again this quarter as many customers have been able to utilize their excess truck capacity, thereby allowing them to delay repair and maintenance expense. A 21 percent decline in parts, service and body shop gross profit was offset by a reduction in general and administrative expenses of 9 percent, resulting in an absorption rate of 96.4 percent in the third quarter of 2009,” added Rusty Rush. |
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