Rush Enterprises Management Discusses Q3 2010 Results - Earnings Call Transcript
Now and update for the third quarter. We are very pleased report the strongest quarter of financial performance since the recent downturn began. Our truck dealership, parts and service and body shop revenues increased 38% compared to the same time period of 2009.
This resulted in a third quarter absorption rate of a 109%, the second highest quarterly absorption rate in the company’s history. We expect our backend operations to still remain strong throughout the remainder of the year.
Class 8 new trunk deliveries increased 58% over the second quarter of 2010. This is the highest level of new truck delivery that we have seen in every two years. Although encouraging, request in whether or not this uptick is sustainable until we see improvement in sectors like new housing construction and manufacturing key factors that drive freight.
During the quarter, our new medium-duty trucks sales were negatively impacted by production delays from certain truck manufactures and introducing a new models. However, Class 8 used truck sales and values are expected to remain strong for the foreseeable future.During the quarter, the c sold the assets of its John Deere construction equipment business, including its Rush Equipment Centers in Houston and Beaumont, Texas to Doggett Heavy Machinery Services. We also acquired a 49 Isuzu dealership in Dallas, which will broaden our product offering and continue to replace the lost GMC franchise revenues from last year.We are pleased with the performance of our recently acquired international franchises in both Utah and Idaho and we will continue to look for opportunities to expand our network with these manufacturers.Now, for an industry outlook, industry experts currently estimate US Class 8 truck retail sales for 2010 to be roughly 109 thousand units up nearly 13% from 2009. Current industry projections for US Class 4 to 7 retail sales for 2010 and 113,500 units.
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