Sonic has $57.8 million operating profit in third quarter 2013

Article by Anita Panait, on October 22, 2013

Sonic Automotive Inc. posted a third-quarter operating profit that remains essentially unchanged year-on-year at $57.8 million, despite a 5-percent surge in revenues to $2.24 billion. The company did not yet publish its third-quarter net income in the report, saying that it was waiting to calculate a newly identified tax gain, related to the extinguishment of certain convertible notes.

Sonic – the third-largest dealership group in the United States -- posted a 68-percent drop in net income in the second quarter of 2013, no thanks to charges associated with retiring debt along with some issues in rolling out True Price.

The program – which sets vehicle prices within $300 of the lowest acceptable transaction price -- was rolled out to all Sonic dealerships in the first quarter of 2013. Sonic said that around 15 percent of its 105 stores were still struggling with the True Price model in the third quarter, compared to around a third in the second quarter.

Sonic also logged an increase in retail new-vehicle margin to 5.9 percent; and in used-vehicle margin to 7 percent. Jeff Dyke, Sonic’s executive vice president of retail operations, told Automotive News that the company’s new-vehicle margins surged by about $100 per car, leading to “millions and millions of dollars worth of gross,” helping Sonic’s overall performance for the quarter.

Sonic said its operations expenses were 78.1 percent of gross profit in the third quarter of 2013, compared to 77.3 percent a year ago. According to Sonic, around three-quarters of its operations costs in the quarter were used to implement new initiatives, such as the “One Sonic-One Experience” customer service plan.

If you liked the article, share on:

Topics: sonic, profit

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