By Emon Reiser
AutoNation reported a decline in third-quarter profit as used-vehicle sales slumped.
The automotive retailer posted net income of $243.7 million, or $5.54 a share, for the quarter ended Sept. 30, compared with $352.6 million, or $6.31 a share, a year earlier. Analysts polled by FactSet expected $5.49 a share.
Net sales rose to $6.89 billion from $6.67 billion a year ago. Analysts polled by FactSet had expected $6.71 billion.
The company said new vehicle revenue increased 11% to $3.2 billion and used vehicle revenue declined 10% to $2.2 billion. Revenues from its domestic car segment declined to $2 billion, while sales for its import and luxury segments increased to $2.1 billion and $2.5 billion respectively.
“During the quarter, we saw double digit year-over-year growth in new vehicle sales and strong sequential growth in used vehicle volume,” said Chief Executive Mike Manley. “This resulted in the first year-over-year growth in total unit sales in eight quarters.
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