Rush Enterprises aftermarket services remained strong and accounted for approximately 62 percent of the company’s total gross profits for the second quarter of 2014.
Second quarter parts, service and body shop revenues increased by 36 percent as compared to the second quarter of 2013. This contributed to a record quarterly absorption ratio of 120 percent, the company announced in its earnings report late last week.
“Continued repair and maintenance of aged vehicles and increased activity in pre-delivery inspection and vehicle modifications resulting from new truck sales were among the drivers for our strong parts, service and body shop revenues this quarter,” says W. M. “Rusty” Rush, Chairman, Chief Executive Officer and President of Rush Enterprises. “Demand for mobile service also remains strong in the energy sector and is on the rise in other parts of the country as well.”
“We expect that strong aftermarket sales will continue through the remainder of 2014, fueled by the on-going need for vehicle maintenance and repair and growth in our portfolio of aftermarket solutions, including expanded mobile service, regional parts call centers, natural gas capabilities and technology to improve customer communication and vehicle uptime,” Rush adds.
Overall, the company announced that for the quarter ended June 30, 2014, net income was $19.8 million, compared with net income of $5.6 million in the quarter ended June 30, 2013.
The company also announced that, effective July 1, Rush Enterprises became the new owners of Truck Parts Depot, Inc., a parts and service associate dealer for International trucks in Gainesville, Ga.