Rush Sales Indicate Soft Truck Market
April 21, 2000
Rush Enterprises posted first quarter 2000 net income of $1.1 million on gross revenues of $210 million versus $3.3 million on revenues of $177.8 million in first quarter 1999. Results for this year included a $1.5 million loss provision to increase the company's reserve for used truck valuation and repossession losses.
The San Antonio based company, which owns North America's largest network of Peterbilt dealerships, acquired several new locations in Arizona, New Mexico, and southern California during the latter half of 1999 which impacted first quarter revenues. Total truck revenues were $177.2 million compared to $154.3 million a year ago. In all, Rush delivered a total of 1,339 new trucks and 592 used trucks in the first quarter compared to 1,229 new trucks and 601 used trucks during the same period last year. Parts, service and body shop sales totaled $38.2 million, up 42% from first quarter 1999.
"As indicated by our first quarter results, the truck market remains soft," said Chairman and CEO W. Marvin Rush. "We expect the remainder of the year to show improvements over the first quarter, however we still believe that year 2000 new truck deliveries will be sharply below prior year levels."
The company has truck dealerships in Texas, California, Oklahoma, Louisiana, Colorado, Arizona, New Mexico and Michigan.
Rush also has John Deere construction equipment dealerships in Texas and Michigan. Revenues in that segment totaled $25.9 million in first quarter compared to $16.6 million the same period last year.