AutoNation Reports Second Quarter Profit Up 9% image

AutoNation reported a second quarter net profit increase of 9% to $78.6 million, despite the fact that new-car margins decreased.

AutoNation reports a profit of $78.6 million in the second quarter, up from $71.9 million in 2011. Operating income increased 14% to $164.2 million and so did the revenue with 17% to $3.9 billion, mainly due to a 29% increase in retail new-vehicle unit sales.

“We believe that the improvement in new vehicle sales will continue and have a planning assumption for 2012 industry new vehicle sales in the mid-14 million units. Accelerated product launches, replacement demand and robust consumer credit will continue to support a strong sales environment,” said CEO Mike Jackson.

While the US economy is not doing so well, the light-vehicle demand increased 15% until June. The new vehicle total gross profit was up 6% to $145.2 million, although gross profit per retailed vehicle decreased 18% to $2,173. Used-vehicle retail sales were up 24% to $144.8 million and the F&I gain increased 4% to $1,283 per vehicle.

AutoNation also reached an all-time record with 66 cents per share from continuing operations, up from last year’s figure of 49 cents.