Rush Enterprises, which operates the largest network of heavy-duty and medium-duty truck dealerships in North America, said the company’s gross revenues for the second quarter totaled $569.2 million,
a 23.3 percent increase from gross revenues of $461.8 million reported for the second quarter ended June 30, 2005.
Net income for the quarter was $14.9 million, or $0.59 per diluted share, compared with net income of $11.2 million, or $0.45 per diluted share, in the quarter ended June 30, 2005.
The company's truck segment recorded revenues of $543.9 million in the second quarter of 2006, compared to $442.5 million in the second quarter of 2005. The company delivered 2,695 new heavy-duty trucks, 1,185 new medium-duty trucks and 954 used trucks during the second quarter of 2006, compared to 2,469 new heavy-duty trucks, 681 new medium-duty trucks and 874 used trucks in the second quarter of 2005.
In announcing the results, W. Marvin Rush, chairman of Rush Enterprises, said "The second quarter results were very strong and we continue to be confident about Rush's prospects for the remainder of the year. 2006 is on track to be a record year for us in terms of truck deliveries and parts, service, body shop and finance and insurance revenues. As a result, we expect to achieve record profits in 2006."
Rush added, "New emissions standards governing diesel engines manufactured after Jan. 1, 2007 will cause a significant decrease in truck deliveries in 2007. We expect second and third quarter 2007 deliveries to be down more significantly compared to 2006 than first quarter 2007 deliveries. We expect the market to begin to rebound in the fourth quarter of 2007 and to be followed by strong markets in 2008 and 2009 as customers pre-buy trucks in advance of even more stringent diesel engine emissions standards that will go into effect in 2010."
Rusty Rush, president and chief executive officer of Rush Enterprises Inc., said "We remain committed to growing our medium-duty business and improving our absorption rates. We have expanded our medium-duty product offering in several locations and have created a dedicated medium-duty sales force. We sold over 400 medium-duty trucks in the month of June. When you consider that we only sold 899 medium-duty trucks in all of 2003, it is obvious that our medium-duty efforts are generating positive results. We expect to sell more than 4,500 medium-duty trucks in 2006. We believe the continued growth of our medium-duty operations will soften the earnings impact that will result from fewer Class 8 trucks being sold in 2007."
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