10/23/2009  Rush's Third Quarter Impacted By Weak Sales Market

The third quarter results of commercial vehicle dealer Rush Enterprises were impacted by the continued weakness in aftermarket parts and trucks sales. The company reported gross revenues of $302.4 million, down 26.9 percent from the year-ago's $413.7 million.

During the quarter, the company's income was $3 million, or 8 cents per share, versus $8 million, or 21 cents a share, in the third quarter of 2008.

"This truck market downturn is the toughest and longest that I have experienced in 45 years in the truck dealership business," said W. Marvin Rush, chairman of Rush Enterprises. "The third quarter provided no relief from depressed truck and aftermarket sales markets."

Within its truck segment, revenues were reduced to $289.8 million, 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, versus 1,350 new heavy-duty trucks, 919 new medium-duty trucks and 936 used trucks in the year-ago quarter. However, the company was hopeful, as its truck deliveries improved over the second quarter.

"Rush Class 8 truck deliveries increased this quarter over the second quarter of 2009 as several large fleet customers took delivery of trucks," said W. M. "Rusty" Rush, president and CEO of Rush Enterprises. "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."

Sales revenue for parts, service and body was $96.0 million, down from $116.3 million in the third quarter of 2008.

"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 continue 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," said Rusty Rush.




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