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Lithia Q1 Profit Beats Expectations as Chrysler Business Declines

April 28, 2010
2 min to read


DETROIT - Lithia Motors Inc., the ninth-largest U.S auto dealership group by new-vehicle sales in 2009, posted a quarterly profit on Tuesday that beat Wall Street estimates, boosted by higher sales of used cars, Reuters reported. Profit on continuing operations, excluding one-time charges and including approximately 5.3 million more shares in 2010 due to a recent equity offering, was 9 cents per diluted share, beating analysts' expectations of 6 cents per diluted share and last year's loss of 1 cent per diluted share. Lithia had 25 percent more shares at the end of the first quarter than a year ago. Net income declined 4.7 percent to $1.27 million, or 5 cents per share, compared with $1.33 million, or 6 cents per share, in the first quarter of 2009. Revenue rose 13.4 percent to $463 million. Oregon-based Lithia features U.S. domestic brands, led by Chrysler and General Motors. The dealership group focuses on lower-priced new vehicles and used vehicles. In the first quarter, Chrysler accounted for 27 percent of sales of Lithia's new vehicle unit sales, down from 36 percent share a year ago when Chrysler was boosting sales with high incentives as it faced bankruptcy. Chrysler Group LLC is managed by Italy's Fiat and emerged from a government sponsored Chapter 11 bankruptcy in June 2009. Lithia's same-store sales rose 11.5 percent. Stripping away Chrysler, same-store new vehicle sales rose 25 percent. General Motors accounted for 16 percent of Lithia sales, compared with 14 percent a year ago. Toyota Motor Corp. accounted for nearly 15 percent of the dealership group's sales, near year-ago levels. Lithia on Tuesday gave an outlook for its second-quarter performance at 19 to 21 cents per diluted share. Full-year 2010 guidance increased to a range of 63 to 69 cents per diluted share, based on better-than-expected first-quarter results and slightly stronger sales, Lithia said. Lithia has 85 stores in 12 states.

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