AutoNation reported net income during the first quarter up 14% on growing car sales.
AutoNation said net income increased 14% in the first quarter and revenue grew 12% from $3.7 billion to $4.1 billion. All the company’s businesses, such as insurance, financing, service and new and used car sales, contributed to this increase.
“It’s really an across-the-board performance, within the context of an overall automotive recovery,” CEO Mike Jackson said in an interview with the AP.
During the first three months of the year the company made $83 million at 67 cents per share, from $73 million or 55 cents per share in 2012. Earnings increased from 56 cents per share in 2012 to 64 cents per share or $4 billion. New car sales increased 9% in the first quarter, compared with 6.4% the growth in total US auto sales. Jackson said that the growth in auto sales in the US is no longer fragile after an increase to 10.4 million in 2009 and 14.5 million in 2012.
“This has strong structural underpinnings that are going to drive this market forward for years,” Jackson said. “This is the best environment I’ve seen for profitability.”
Source: The Detroit News