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Rush Enterprises Forecasts Up to 20% Decline in New Truck Deliveries for 2nd Half

July 27, 2012, 07:13 AM
Filed Under: Trucking

Rush Enterprises, Inc., which operates the largest network of commercial vehicle dealerships in North America announced results for the second quarter ended June 30, 2012. The Company's net income for the quarter was $17.4 million compared with net income of $12.5 million in the quarter ended June 30, 2011.

In the second quarter Rush's Class 8 retail sales, which accounted for 5.3% of the U.S. market, increased by 19% over the same time period in 2011. "Our performance in Class 8 truck retail sales this quarter was primarily driven by strong activity in the energy sector and replacement truck deliveries to larger fleets," explained Rusty Rush.

 "Used truck sales and residual values remained steady throughout the quarter and are expected to continue at current levels for the remainder of 2012," Rusty Rush added.

"We expect U.S. Class 8 retail sales will reach approximately 180,000 to 185,000 units by year end. Reduced order intake during the past several months could result in as much as a 20% decrease in new truck deliveries during the second half of 2012. Although business for most of our customers remains steady, we believe that fleet decision makers will exercise caution in making new truck replacement purchases during the second half of the year due to current political and fiscal uncertainty. We expect that as these uncertainties subside, order intake should increase by year end," said Rusty Rush.

Current industry forecasts indicate an increase in 2013 U. S. Class 8 retail sales to 227,000 units. "This is driven primarily by the need for replacement trucks to offset the age of fleet vehicles and should result in an improved truck sales market next year," said Rusty Rush. Industry experts also forecast U. S. Class 4-7 retail sales to be at 160,000 units in 2012 and 184,000 units in 2013.

Read the full Rush Enterprises press release.

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