The decrease in freight tonnage and weak sales of both trucks and parts was reflected in Rush Enterprises' second quarter results.
The company posted a net loss of $1.5 million, or $0.04 per share, for the quarter, compared with net income of $6.1 million, or $0.16 per share, in the second quarter of 2008.
"As expected, continued weak truck and aftermarket sales caused the second quarter to be the most challenging operating period since this downturn began in 2007," said W. Marvin Rush, chairman of Rush Enterprises.
The company's revenue was $312.1 million for the second quarter, a 31.4 percent decline from last year's $454.7 million during the same period.
The truck segment saw revenues of $298 million, versus $425.2 million in the second quarter of 2008. Rush delivered 954 new heavy-duty trucks, 638 new medium-duty trucks and 776 used trucks during the quarter. In the same quarter of 2008, it delivered 1,665 new heavy-duty trucks, 979 new medium-duty trucks and 795 used trucks. Sales revenue from parts, service and body shop was $95.8 million, down from $111.9 million in the second quarter of 2008.
"Decreased freight tonnage and overall weakness continued into almost every market we serve," said Rusty Rush, president and CEO. "With U.S. Class 8 retail sales forecast now below 100,000 units, we expect this will continue to be one of the weakest markets since 1983."
"We believe we are at or near the bottom of this cycle, however, given the economic uncertainty, it is virtually impossible to predict with confidence when this cycle will end," he said.
The company posted a net loss of $1.5 million, or $0.04 per share, for the quarter, compared with net income of $6.1 million, or $0.16 per share, in the second quarter of 2008.
"As expected, continued weak truck and aftermarket sales caused the second quarter to be the most challenging operating period since this downturn began in 2007," said W. Marvin Rush, chairman of Rush Enterprises.
The company's revenue was $312.1 million for the second quarter, a 31.4 percent decline from last year's $454.7 million during the same period.
The truck segment saw revenues of $298 million, versus $425.2 million in the second quarter of 2008. Rush delivered 954 new heavy-duty trucks, 638 new medium-duty trucks and 776 used trucks during the quarter. In the same quarter of 2008, it delivered 1,665 new heavy-duty trucks, 979 new medium-duty trucks and 795 used trucks. Sales revenue from parts, service and body shop was $95.8 million, down from $111.9 million in the second quarter of 2008.
"Decreased freight tonnage and overall weakness continued into almost every market we serve," said Rusty Rush, president and CEO. "With U.S. Class 8 retail sales forecast now below 100,000 units, we expect this will continue to be one of the weakest markets since 1983."
"We believe we are at or near the bottom of this cycle, however, given the economic uncertainty, it is virtually impossible to predict with confidence when this cycle will end," he said.
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