AutoNation Reports Rise in New-Vehicle Sales, Record-Setting F&I Performance
FORT LAUDERDALE, Fla. — AutoNation Inc. recorded a 15 percent increase in third-quarter profits from a year ago behind rebounding new-vehicle sales and a record-setting performance by the group’s F&I operations. The dealer group earned $81.6 million in the third quarter, up from 70.7 million a year ago. AutoNation also reported revenue of $3.93 billion, up 12 percent from a year ago. Revenue was also up for all major business sectors, including F&I.
“We're pleased with our performance in what continues to be an improving auto retail environment,” said Michael E. Maroone, AutoNation president and COO, during the group’s quarterly investor call. “In the third quarter, we delivered growth in revenue and gross profit for all sectors of our business: new and used vehicles, customer care and finance and insurance, as well as record finance and insurance gross profit for vehicle retail, strong operating margin of 4.2 percent and record third quarter earnings per share.”
The group’s F&I operations delivered a record same-store gross profit per vehicle of $1,290, up 6 percent from a year ago. Total F&I profit grew by $25 million, or 20 percent, to $147 million. The big news was the jump in new-vehicle revenue, which rose $357 million, or 19 percent, to $2.2 billion. Revenue per vehicle retailed, however, fell to $32,800, down $618, or two percent, from a year ago.
For the first nine months of 2012, the company reported adjusted net income from continuing operations of $237 million, compared to $214 million a year ago. The company’s revenue for the same period totaled $11.5 billion, up 13 percent from the same period last year. Additionally, income from domestic sales rose from $47 million a year ago to $52 million, with sales rising 9 percent. Income from import sales rose from $61 million a year ago to $69 million. Third-quarter import sales were up 35 percent from last year. Income from premium luxury sales rose from $53 million to $63 million, with unit sales up 11 percent.
"We continued to see a strong new-vehicle selling environment in the third quarter, reflected in a seasonally adjusted U.S. industry annual selling rate of 14.5 million units,” said Mike Jackson, the group’s chairman and CEO. “We are expecting industry new vehicle sales to be mid-14 million units in 2012."
More Industry

Penske Auto Group Deal a Record
The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.
Read More →
War Toll a Damper on Used Auto Prices
Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.
Read More →
Bridge the Maintenance Gap
With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.
Read More →
California Store Has New Owner
The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.
Read More →
BMW Plant Pursues Cleaner Energy
BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.
Read More →
Auto Affordability Inches Up
The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.
Read More →
Ohio Auto Group Under New Ownership
After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.
Read More →
RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →
Missed Maintenance Creates Opportunity
As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.
Read More →