AutoNation's Profit Rises 29% in Q2
AutoNation Inc. reported much-improved earnings as a result of the continuing recovering in new-vehicle sales in the U.S.
The Ft. Lauderdale, Fla., auto seller said second-quarter profit increased 29 percent, to $47.2 million from $36.7 million, while earnings-per-share jumped 38 percent, to 29 cents from 21 cents. Revenue climbed 20 percent to $3.1 billion.
AutoNation, which operates 249 franchises in 15 Southern and Western states, said it purchased 20.9 million of its own shares during the second quarter, and approved additional share purchases of up to $250 million.
Chairman and Chief Executive Michael J. Jackson said some consumers who put off purchases during the last two years are coming back to showrooms and finding they can get financing for loans and leases again.
"We have a more normal credit environment, but we're not there yet," Jackson said in an interview.
The company's sales of vehicles made by Ford Motor Co., General Motors Co. and Chrysler Group LLC increased 30 percent. It saw increases of about 15 percent for both sales of import brands such as Toyota and Honda, and luxury brands such as BMW and Mercedes-Benz.
Along with its earnings, AutoNation said it has acquired three new franchises: Toyota Mall of Georgia, a Hyundai store in Atlanta and another in Seattle. Together the three stores generate annual revenue of about $200 million.
More Industry

Selling to Grow
The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.
Read More →
Auto Group Acquires Top-Performing Rooftop
Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.
Read More →
China as Pacesetter
Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.
Read More →
BMW Concept Car Makes Fuel to Burn
The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.
Read More →
South Carolina Auto Group Downsizes
Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.
Read More →
July Was Hot for Auto Borrowers
Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.
Read More →
Structure Leads to Optimized Auto Listings
As the average car-buying journey has shifted to a blend of digital and retail, a dealership’s vehicle listings must be optimized to answer shoppers’ questions clearly and accurately.
Read More →
Consumers Mixed on Economy, Finances
A July survey shows spotty sentiment of current and future conditions, in addition to demographic differences as overall opinion of present circumstances kept sliding.
Read More →
EVs Closing the European Gap
Electrified powertrains led June new-vehicle sales in Europe, reaching 26% of the market.
Read More →
Early Intervention Saves Retention
Sales and service departments have the highest annual dealership turnover rates, according to a new industry report, costing money and time that could be better spent elsewhere.
Read More →