Truck dealer Rush Enterprises reported a decline in the second quarter’s source of revenue and net revenue, as all segments of its business were affected by the economic effects of the COVID-19 pandemic.
For the consistent period ended June 30, the Company reported a net revenue source of $16.8 million, or 46 cents consistent with the diluted stake, compared to $41.6 million, or $1.10, in the previous year’s quarter.
Revenue fell to $1 billion from $1.5 billion earlier.
Running
“As expected, the COVID-19 pandemic and the resulting closing orders that forced the closure of many companies, along with the expected slowdown in sales of new advertising vehicles in the sector, unforeseen warfare in energy costs, and the sharp fall in oil costs, had a significant negative effect. have an effect on our monetary effects in the quarter of this moment,” said WM” Rusty “Rush, president and CEO of Rush Enterprises Inc.
The San Antonio corporate sold 1,866 new Class 8 trucks in the current quarter, 54.7% less than in the 2019 period. It accounted for 5.2% of the new U.S. Class 8 market, compared to 5.7% the previous year, in a total of 36,042 from ACT Research.
Rush said ACT expects U.S. Class 8 retail sales to succeed at 159,000, up from 127,500 in its first-quarter forecast.
In Classes 4-7, Rush sold 2,333 units, 39.7% less than last year. This accounted for 4.6% of this market.
Rush increased his minimum hourly staff wage to $15. It also renewed its percentage buyback program and lifted the wage freeze for service technicians brought in the quarter. (Rush Enterprises Inc.)
It sold 1,768 used advertising trucks in the period, 15.8% less than the previous year.
Secondary market profits fell to $377.6 million from $448.2 million.
The company’s absorption fell to 110.2% from 122.4% the previous year.
Rush calculates the absorption rate by dividing the gross profit of spare parts, service, and frame shop departments between the overheads of all departments of a dealership, with the exception of the sales prices of new and used advertising vehicle departments and the prices of owning new ones. and used advertising vehicles. vehicle stock.
“To cope with difficult market conditions, we temporarily implemented measures to reduce and manage spending appropriately to maintain profitability,” he said. “Given the conditions in the market, we believe the worst has happened. We will continue to monitor the pandemic strongly and have an effect on our consumers and the economy in general. We believe any recovery will be slow and intermittent in the coming years. Quarters. »
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Rush added: “The activity of the energy sector remains the most affected. Global price measures have had a negative effect on the number of platforms and the number of electric cars in service, and this segment is not expected to improve in the short term. »
At the same time, the company increased its quarterly monetary dividend from 1 cent to 14 cents.
Classified as essential activities, Rush truck centers have remained fully operational as the company’s network of brokers, although some opening hours remain modified to reflect previous staff discounts and common site clean-ups and disinfections. The company continues to offer street portion collection, online portion orders and online vehicle service communications.
Net revenue source for the six-month era of $39.9 million, or $1.08, compared to $78.7 million, or $2.08, a year earlier.
Six months fell to $2.3 billion from $2.9 billion.
Similarly, the company raised the minimum wage paid to all staff per hour to $15. He renewed his percentage buyback program and lifted the wage freeze for service technicians, bringing the quarter “the popularity of the vital paints they make to keep our consumers operational,” Rush said.
The company owns and operates Rush Truck Centers, the largest network of advertising vehicle dealers in the United States, with more than a hundred locations in 22 states. It represents the Peterbilt, International, Hino, Isuzu, Ford and Mitsubishi truck brands.
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