Rush’s 4Q Profit Slips; Full-Year Truck Sales Rise 10%
Truck dealership Rush Enterprises’ fourth-quarter income slipped from a year earlier, but its full-year income improved as 2012 heavy-duty truck sales rose 10%.
The company also said it is ramping up its ability to service natural-gas trucks.
Fourth-quarter net income fell to $14.2 million, or 36 cents per share, from $19.4 million, or 50 cents, a year earlier. Revenue slipped 5.6% to $732.3 million.
For the year, San Antonio, Texas-based Rush earned $62.5 million, or $1.57 per share, up from $55.2 million, or $1.42, in 2011. Revenue jumped 20% to a record $3.1 billion.
In the 2012 fourth quarter , Rush delivered 2,102 new heavy-duty trucks, down from 2,872 a year earlier; 1,789 new medium-duty trucks, up from 1,711 units; and 393 light-duty trucks, up from 292. Rush delivered 1,039 used trucks in the quarter, down from 1,215 a year earlier.
Rush’s 2012 Class 8 retail sales rose 10% to 9,925 vehicles, which accounted for 5% of the total U.S. Class 8 retail truck sales market. The company said it expects U.S. Class 8 retail sales will range from 198,000 to 208,000 units in 2013.
The company is continuing to invest in natural-gas infrastructure to better serve its customers, CEO W.M. “Rusty” Rush said in a statement, adding that the company has about 85 factory-certified technicians to work on natural-gas vehicles.
He said the company has made “substantial investments” at six of its truck centers for service on compressed and liquefied natural-gas trucks and has plans in place to bring additional facilities online as needed in key markets.
“We continue to believe natural gas-powered vehicles will grow in popularity and could represent up to 10% of the Class 8 new truck sales market in the next five years,” Rush said.
