AutoNation posts a 26% improvement in net income in the first three months

Article by Christian Andrei, on April 26, 2011

A 26% improvement in net income was posted by AutoNation Inc. in the first three months of 2011; however, it lowered its prediction for U.S. industry sales for the entire year due to supply disruptions related to the disaster in Japan. Meanwhile, the net profit of the nation's largest auto retailer climbed to $69.4 million from $55.2 million the previous year.

Revenue rose by 17% to $3.31 billion. AutoNation estimated industry light-vehicle sales in 2011 to reach 12.8 million but it changed this forecast to the "mid-12 million" range. In a statement, AutoNation CEO Mike Jackson said that there are “significant reductions” in the shipments from Japanese car manufacturers until the end of the year.

Shipment levels are only expected to normalize in early 2012. In early April, AutoNation said that over half of the new vehicles that it sold in 2010 were built by Japanese companies like Toyota Motor Corp. and Honda Motor Co.

AutoNation revealed that of the total deliveries last year, about two-thirds were built in North America. But Jackson remains optimistic and stated that the “underlying recovery in consumer demand for autos remains on track in the U.S.” In 2010, about 11.6 million vehicles were sold in the U.S., an 11% increase from 27-year lows posted in 2009.

AutoNation said its new-vehicle unit sales increased by 23% in the first quarter compared to a 20% gain throughout the industry.

Meanwhile, same-store new-vehicle sales increased by 20%. Revenue for new vehicles increased by 22% while that of used vehicles increased by 14%. In addition, the revenue for finance and insurance operations rose by 16% and there was a 6% gain for service and parts.

If you liked the article, share on:


Login or Create new account to add a comment!


It wasn’t too long ago when Maserati took the wraps off what appears to be the most gorgeous concept coupe ever made. The Alfieri coupe premiered at the 2014 Geneva...
by - October 23, 2016
Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016