AutoNation beat expectations on revenues in the fourth quarter

Article by Christian Andrei, 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

Login or Create new account to add a comment!

Recommended

The 2018 model year could be an exciting year for fans and enthusiasts of the Chevrolet Corvette. This comes as the 2018 version of the Corvette is bound to feature...
by - January 19, 2017
As if seeing the future more than a decade from now, one of the top scientists in the world of robotics and automations is predicting that children born today won’t...
by - January 19, 2017
Ford has just recently unveiled the 2018 Ford Mustang, and as it turned out, the carmaker gave its beloved pony car a facelift. There have been mixed reactions about the...
by - January 19, 2017
The bidding war for one of the only 20 examples -- 21 actually, but the 00 version went to a museum -- of the classically beautiful Lamborghini Reventon built and...
by - January 18, 2017
Bentley once again confirmed its plans to push PHEV into their future lineups. As a matter of fact, the Bentayga SUV will be the first to have the plugin hybrid...
by - January 18, 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