Due to higher sales of both new and used light vehicles, Asbury Automotive Group Inc. posted profits in the fourth-quarter that exceeded expectations. Asbury, which is the nation's sixth-largest dealership group, reported a net income of $5.4 million in the fourth quarter, compared with $200,000 for the same period a year earlier.
Fourth-quarter revenue rose by 28% to $1.02 billion. New-vehicle revenues climbed 26% to $579.1 million, while used vehicle revenues increased by 21% to $270.8 million.
Meanwhile, revenue for the full year totaled $3.9 billion, a 14% increase from 2009. In the fourth quarter, Asbury acquired nine franchises with total annual revenues estimated at $160 million. During this period, it also sold one heavy-truck store, Nalley Motor Trucks, which had annual revenue of $9 million.
On Feb. 10, Charles Oglesby revealed that he has stepped down as CEO and will remain on the board until he retires in July. CFO Craig Monaghan is Oglesby’s successor as CEO. During the auto sales downturn in 2008 and 2009, Asbury restructured.
It reduced costs and moved from New York to suburban Atlanta. Asbury currently ranks No. 6 on the Automotive News list of the top 125 U.S. dealership groups. Asbury posted new-vehicles sales of 62,833 units in 2009. It operates 84 retail stores. [via autonews - sub. required]