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Rush aftermarket business booming, sets quarterly record
Rush Enterprises reported a net income of $13.5 million in its earnings call Wednesday,stoked by an 18 percent boost in the company’s aftermarket solutions division.
Aftermarket solutions accounted for approximately 64 percent of the dealership network’s total gross profit in the first quarter of 2013, with parts, service and body shop revenues reaching a new record quarterly high.
Parts and service sales swelled to $231.4 million in the first three months of the year, up from $196.6 million the same time last year.
“Our aftermarket success this quarter is the result of continued maintenance of aged vehicles, incremental revenues generated from newly acquired locations and innovative aftermarket solutions,” Rusty Rush, Chief Executive Officer and President of Rush Enterprises, Inc., says. “We have invested in personnel, facility enhancements, advanced diagnostic technology, mobile service offerings, custom vehicle modifications services and alternative fuel capabilities that expand our portfolio of customer solutions. The investments we have made allow us to efficiently support our customers in our shops or their job sites and are a key factor in our ability to increase aftermarket revenues.”
Rush forecasted that parts, service and body shop revenues “will remain strong throughout 2013.”
Rush’s parts and service division is on the rise.
In the company’s year end earnings reported in February, aftermarket solutions accounted for a 21 percent jump in revenues and 817.3 million in sales.