AutoNation beat expectations on revenues in the fourth quarter

Article by Christian A., on January 29, 2012

Even with the tough challenges in the middle of the year, the net income of AutoNation Inc. reached record levels in the fourth quarter due to the boost it got from the rebound of new and used vehicles. AutoNation, the biggest auto retailer in the country, had a net income of $69.4 million for the fourth quarter, a 3.1% increase.

Its net income for the entire year increased by 24.2% to $281.4 million. In a statement, AutoNation said that it set an all-time profit record on an adjusted per-share basis for the fourth quarter as well as for the full year.

Total revenue increased by 13% to $3.7 billion in the fourth quarter as its new and used unit sales climbed by 11%. Revenue rose by 11% to $13.8 billion for the full year. Its gross profit per vehicle increased by more than 2% in the quarter to $2,451. Meanwhile, gross profit from finance and insurance increased by 5.4% to $1,223 for each vehicle.

CEO Mike Jackson said that the fourth quarter ended a year wherein supply disruptions from the Japanese earthquake reduced industry sales growth. However, the resulting vehicle shortage had helped retailers in getting top dollar from buyers. AutoNation had improved in all business areas.

Jackson said that this year, there would be even higher sales. He forecasts that its new vehicle sales will reach 14 million units in 2012, a 10% increase over 2011. In a prepared statement, Jackson said that they’re excited about the continuous recovery in auto retail. This was driven up by the accelerated product offerings, strong consumer credit and strong replacement demand, Jackson said.

If you liked the article, share on:

Comments

Recommended

The upscale version of the GMC Yukon body-on-frame sport utility vehicle – the GMC Yukon Denali – has been refreshed for the 2018 model year. It now sports a new...
by - May 26, 2017
The largest gathering of Volkswagen and Audi cars in Europe is underway, and the German premium carmaker is displaying the third model of its G-Tron range at the 2017 Worthersee...
by - May 26, 2017
Have you been wondering how much you have to produce to acquire a 2018 Mercedes-Benz S-Class Facelift? Wonder no more, as Mercedes-Benz has already divulged the pricing – at least...
by - May 26, 2017
Following the M3’s new facelift earlier this year, BMW is once again bringing something fresh to the table. In its newest offering, a cheaper version of the high performance sedan...
by - May 26, 2017
If this design study leads to the eventual and much-awaited BMW 8 Series grand tourer, then we wouldn’t complain. After all, it looks so promising. It isn’t the final version...
by - May 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries