AutoNation posted net income of $71.9 million in the second quarter

Article by Christian A., on July 26, 2011

AutoNation Inc., during the second quarter, increased profits in all business areas despite the supply constraints on Japanese-brand vehicles. Specifically, the country’s largest vehicle retailer recorded a net income of $71.9 million, an increase from $47.2 million during the same period last year. Revenue increased 8 percent to $3.3 billion while operating income rose 15 percent to $144.4 million.

The company’s Chief Executive Officer Mike Jackson credited the increases to strong new and used vehicle gross profit figures which were up 26 percent and 11 percent, respectively, on a per vehicle basis.

In addition, AutoNation posted higher profits in its parts and service as well as its finance and insurance businesses. The company recorded increases even with the dwindling availability of vehicles for its Japanese-brand stores.

Meanwhile, shortages are being resolved but will continue into the third quarter, Jackson stated. He forecasted that Japanese-brand car shipments decreased 40 percent below the planned levels in the second quarter.

In addition, it is forecasted to be 10 percent to 15 percent below planned levels by September. Moreover, Jackson disclosed that margins on cars from Japanese manufacturers benefited from constrained supply. The income of AutoNation’s import segment rose by 25 percent despite the 12 percent decline of new vehicle sales in the segment.

Jackson mentioned that while he foresees import-brand vehicle margins to remain strong in the third quarter, they will drop just like in the second quarter due to the improving supply environment.

Furthermore, the company forecasted that the new-vehicle sales environment will start to resume its normal operations in the fourth quarter. The company will continue to remain optimistic about the long-term recovery for the U.S. auto market, Jackson stated.

If you liked the article, share on:

Comments

Recommended

November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 2017
All is set for Volkswagen’s plans to enter the electric vehicle game, as prompted by the so-called Dieselgate scandal. In fact, the German carmaker has already made a commitment to...
by - November 17, 2017
As BMW has already revealed, the next generation of the BMW M5 (F90) is a four-wheel drive high-performance sedan with overwhelming power output and torque at its disposal. However, it...
by - November 17, 2017
McLaren unveiled a one-off Gold - on - Black 720S at the 2017 Dubai Motor Show which will be on display throughout the entire stretch of this week’s event. The...
by - November 16, 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