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.
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