AutoNation Reports Profit for the Second Quarter image

Today, July 18th, AutoNation reported higher profit for the second quarter as new-vehicle sales increased 11%, reaffirming the 2013 forecast for new-vehicle sales.

“When I said the industry would sell mid-15 million units this year, we were one of the most optimistic,” Chief Executive Mike Jackson said in a telephone interview. “At the halfway point, I’m very happy to say I’m confident about where the industry is headed for this year.”

Jackson said that to maintain forecast for industry sales consumers have to replace their aging vehicles and the automakers have to keep offering new products and affordable financing deals. He added that consumers have adapted to the gasoline prices of around $3.50 a gallon, and prices would have to reach $5.00 a gallon to affect buying behavior.

AutoNation reported a net income up 14.4% to $89.9 million, which would be 73 cents a share, compared with $78.6 million, or 64 cents a share, during the same period last year. revenue was up 13% to $4.4 billion, surpassing the $4.33 billion predicted by analysts, and retail new vehicle sales jumped 11%.

AutoNation said its retail sales in May increased 11% to 26,372 units, compared with 23,763 units in May 2012. During the first five months of the year sales rose 10% to 116,550 units, from 105,746 units during the same period last year.

Source: Reuters