Rush Enterprises announced Q1/17 revenues of $1.045 billion and net income of $14.5 million compared with revenues of $1.071 billion and net income of $2.4 million in Q1/16. Rush noted Q1/16 net income was negatively impacted by a non-recurring restructuring charge of $8.1 million to selling, general and administrative expenses related to the closing of certain dealerships and the disposition of excess real estate.

Excluding the Q1/16 non-recurring restructuring charge, net income increased by $7.2 million in Q1/17 compared to Q1/16.

U.S. Class 8 retail truck sales were 38,023 units in Q1/17, down 29% over the same time period last year. The company sold 2,706 Class 8 trucks in Q1/17, an increase of 1.0% compared to 2016, which accounted for 7.1% of the U.S. Class 8 truck market. ACT Research forecasts U.S. retail sales for Class 8 vehicles to be 168,000 units in 2017, a 15% decrease compared to 2016.

Rush noted that Q1/17 Class 8 truck sales outperformed the U.S. market and that its market share increased. The company also noted Class 4-7 truck sales were impacted by the timing of large fleet deliveries.

“Over-the-road fleet sales remain challenging, as they did throughout 2016, but we experienced moderate increases in stock truck, small fleet and vocational sales in the first quarter,” said Rusty Rush, CEO and president. “The number of used trucks for sale nationwide remains higher than normal causing continued low used truck values. However, we have positioned our used truck inventory to be as aggressive as possible in the current market,” Rush said.

“In addition, we have seen an increase in Class 8 truck orders from stronger activity in the vocational segment, such as construction and energy, and general economic improvement. We are encouraged by this increase in order activity, and believe 2017 is shaping up to be better than originally anticipated,” said Rush. The company sold 2,553 Class 4-7 medium-duty commercial vehicles in the first quarter, a decrease of 22.0% compared to the first quarter of 2016, and accounted for 4.5% of the U.S. Class 4-7 commercial vehicle market.  ACT Research forecasts U.S. retail sales for Class 4-7 vehicles to reach 233,800 units in 2017, a 3% increase over 2016.

“Due to the timing of several large fleet deliveries in the first quarter of 2016, we showed a decline in our medium-duty sales this quarter, but we expect to remain on pace with the market throughout the rest of 2017,” Rush said. “We continue to see demand for our ‘Ready-to-Roll’ work-ready inventory, especially in the Southeast U.S. where construction is strong, as well as strong demand in our vehicle lease and rental markets.