Rush Enterprises and Penske Automotive Group reported decreased finance and insurance revenue in the second quarter while seeing slight bumps in total revenue.
The mixed results highlight challenges facing the commercial trucking industry, including low consumer spending, tight lending standards and high operating costs. While there have been signs of a recovery in recent months, the industry is likely to remain in a recession for the rest of 2024 as market conditions gradually improve, according to ACT Research.
Rush Enterprises
Rush Enterprises, the San Antonio-based commercial vehicle dealership group, had F&I revenue of $5.9 million in Q2, down 4% year over year. Revenue from aftermarket parts and services fell 3.6% YoY to $627.4 million. Total revenue was $2 billion, up 1.2% YoY.
The company sold 4,128 new Class 8 trucks in Q2, down 4% YoY, while Class 4 to Class 7 sales rose 6.2% YoY to 3,691. Rush anticipates similar sales results in the third quarter amid “weak demand for Class 8 trucks,” Chief Executive W.M. “Rusty” Rush stated in the company’s July 31 earnings report.
“In the third quarter, we expect new Class 8 truck sales to soften compared to the second quarter, but we expect Class 4 to Class 7 commercial vehicle sales to remain steady, and we believe that our commercial vehicle sales will keep pace with, if not outperform, the market,” he said.
Halfway through 2024, Rush had $1.2 billion of floor plan notes payable in Q2, up 9% YoY.
Penske Automotive Group
Bloomfield Hills, Mich.-based Penske Automotive Group’s F&I revenue for commercial trucks dropped 16% YoY in Q2 to $4.2 million.
Parts and services revenue for commercial trucks was $219.2 million, down 5.6% YoY. Total commercial truck revenue was $892.3 million, down 2.9% YoY.
However, parts and services revenue companywide hit a record $753 million, an increase of 10% YoY.
“I am pleased to see that our service and parts business remains strong and contributed to our record total quarterly revenue of $7.7 billion,” Chief Executive Roger Penske stated in the company’s July 31 earnings report. “In addition, our focus on efficiency and controlling costs drove a sequential decline in selling, general, and administrative expenses as a percentage of gross profit by 50 basis points to 70.2%.”
Penske delivered 126,653 units in Q2, up 2% YoY. The company had $4.1 million of floor plan notes payable at midyear, a 28% YoY increase compared to the first half of 2023.
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