October 30, 2018 / 11:37 AM / 18 days ago

AutoNation profit rises 15 pct on higher sales of used vehicles

Oct 30 (Reuters) - AutoNation Inc reported a 15 percent jump in quarterly profit on Tuesday, as higher demand for used vehicles helped the largest U.S. auto retail chain offset declines in new vehicle sales.

The company said revenue from used vehicle sales rose 4.3 percent to $1.3 billion in the third quarter ended Sept. 30, while gross profit in the business increased 6.2 percent to $91 million.

Revenue from per used vehicle sold by AutoNation rose 3.3 percent to $20,044 and gross profit per vehicle was up 2.3 percent at $1,446.

The company, which also announced an investment of $50 million in online car retailer Vroom Inc, said revenue from new vehicle sales fell 5.6 percent to $2.93 billion in the quarter and gross profit was down 13.4 percent at $125.4 million.

AutoNation’s net income from continuing operations rose to $112.3 million, or $1.24 per share, from $97.6 million, or $1 per share, a year earlier.

Total revenue fell 1.5 percent to $5.35 billion.

Analysts on average had expected a profit of $1.24 per share and revenue of $5.56 billion, according to Refinitiv data. (Reporting by Rachit Vats in Bengaluru and Joseph White in Detroit; Editing by Maju Samuel)

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