The first quarter was characterized by lower truck sales for Rush Enterprises, leading to decreases in gross revenues, and net income.
The company's gross revenues were down 6.3 percent to $308.4 million from $329.1 million reported for the first quarter 2009. Net income was $2.2 million, or 6 cents a share, compared to $2.9 million, or 8 cents a share, in the 2009 period.
Rush's truck segment saw revenues fall to $295.5 million, versus $313 million in the first quarter 2009.
The company delivered 969 new heavy-duty trucks, 611 new medium-duty trucks and 686 used trucks during the first quarter of 2010. During the year-ago quarter, the company delivered 1,032 new heavy-duty trucks, 754 new medium-duty trucks and 577 used trucks.
Parts, service and body shop sales revenue was $99.4 million in the first quarter of 2010, compared to $101.8 million in the first quarter of 2009.
"We believe 2010 will be another difficult year, but see encouraging signs of recovery in the general economy and specifically in our industry," said W. Marvin Rush, chairman of Rush Enterprises. "We are seeing signs that lead me to believe Rush will experience an upturn in business in 2010 which will allow our employees to focus on servicing our customers in an expanding market."
"However, we expect 2010 will be another difficult year for truck sales," said Rusty Rush, president and CEO of Rush Enterprises. "Trucks with 2010 emissions compliant engines are now beginning to reach dealership lots. This new technology comes with a significant price increase, which will limit demand. As a result, we believe that new heavy-duty and medium-duty truck sales will remain sluggish in the second and third quarters of this year. Until then, we expect trucks with pre-2010 engines to be in high demand."
The company does expect truck orders to improve in the second half of this year.
The company's gross revenues were down 6.3 percent to $308.4 million from $329.1 million reported for the first quarter 2009. Net income was $2.2 million, or 6 cents a share, compared to $2.9 million, or 8 cents a share, in the 2009 period.
Rush's truck segment saw revenues fall to $295.5 million, versus $313 million in the first quarter 2009.
The company delivered 969 new heavy-duty trucks, 611 new medium-duty trucks and 686 used trucks during the first quarter of 2010. During the year-ago quarter, the company delivered 1,032 new heavy-duty trucks, 754 new medium-duty trucks and 577 used trucks.
Parts, service and body shop sales revenue was $99.4 million in the first quarter of 2010, compared to $101.8 million in the first quarter of 2009.
"We believe 2010 will be another difficult year, but see encouraging signs of recovery in the general economy and specifically in our industry," said W. Marvin Rush, chairman of Rush Enterprises. "We are seeing signs that lead me to believe Rush will experience an upturn in business in 2010 which will allow our employees to focus on servicing our customers in an expanding market."
"However, we expect 2010 will be another difficult year for truck sales," said Rusty Rush, president and CEO of Rush Enterprises. "Trucks with 2010 emissions compliant engines are now beginning to reach dealership lots. This new technology comes with a significant price increase, which will limit demand. As a result, we believe that new heavy-duty and medium-duty truck sales will remain sluggish in the second and third quarters of this year. Until then, we expect trucks with pre-2010 engines to be in high demand."
The company does expect truck orders to improve in the second half of this year.
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