Peterbilt mega-dealer Rush Enterprises Inc. reported first quarter net income of $434,000, a 180% increase over first quarter 2001.
Gross revenues for the period were $181.7 million, an 11.1% decrease from first quarter 2001.
Chairman and CEO W. Marvin Rush noted that, despite a 30% drop in new truck deliveries, this was the second straight quarter the company’s earnings have increased compared to the previous year. He credited asset reduction and continued planned growth of higher margin parts and service business.
The company’s heavy duty truck segment recorded revenues of $153 million, compared to $172.8 million in the first quarter of 2001. Rush delivered 975 new trucks and 482 used trucks during the quarter, compared to 1,387 new and 513 used trucks for the same period a year ago. Parts, service and body shop sales increased 13.5% from $43.8 million to $49.7 million.
“I believe we are positioned well for continued earnings growth,” said Rush. “For the first time since late 1999, the industry expects new truck deliveries to increase significantly during the second and third quarters, as customers accelerate their purchases prior to new emission regulations becoming effective October 1, 2002."
The company's construction equipment segment recorded first quarter revenues of $17.4
million compared to $20.3 million a year ago. New and used construction equipment unit sales revenue decreased 20.9% from the same period in 2001. Parts and service sales increased 3.6%. Rental sales decreased 28.6%.
Rush Enterprises operates Peterbilt dealerships in Texas, California, Oklahoma, Louisiana, Colorado, Arizona, New Mexico and Michigan. It also has John Deere construction equipment dealerships in Texas and Michigan.