Slower Truck Market Hurts Rush Profits
July 18, 2000
New truck sales will be “sharply below” prior years, but the country’s biggest Peterbilt dealer, Rush Enterprises, expects to show financial improvements the rest of the year.
The San Antonio-based company posted second quarter profits of $1.7 million on revenues of $248.5 million versus $3.9 million on $189.4 million second quarter 1999.
Acquisitions of operations in Arizona, New Mexico, and southern California during the latter part of 1999 significantly impacted truck sales and revenue. The company sold 1,653 new trucks and 558 used trucks in the quarter compared to 1,226 new trucks and 542 used trucks during the same period a year ago. Revenues for its heavy duty truck segment were $210.4 million versus $161.7 million second quarter 1999. Parts, service and body shop sales were up 47%, to $36.9 million.
For the first six months of 2000 Rush reported net income of $2.8 million on total sales of $458.5 million versus $7.2 million on $367.3 in the first half of 1999. Revenue from new and used truck sales for the period was $300.5 million versus $251.3 million in 1999. Parts and service revenue was $85.7 million versus $61.6 million a year ago.
Rush Enterprises operates the largest network of Peterbilt heavy truck dealerships in North America with operations in Texas, Oklahoma, California, Louisiana, Colorado, Arizona, New Mexico and Michigan. It also has John Deere construction equipment dealerships in Texas and Michigan.