December Sales Up 15% at AutoNation - Analyst Blog
January 09 2013 - 6:20AM
Zacks
The Fort Lauderdale, Florida-based largest automotive retailer
AutoNation Inc. (AN) recorded 15% year-over-year
increase in sales to 27,958 vehicles in December 2012. The growth
was mainly attributable to strong sales of imported vehicles.
Sales in the Domestic segment went up 11% to 8,415 vehicles. The
segment comprises retail automotive franchises that sell vehicles
manufactured by Ford Motor Co. (F),
General Motors Company (GM) and Chrysler.
Sales in the Import segment escalated 18% to 13,450 vehicles. The
segment covers retail automotive franchises that sell vehicles
manufactured by Toyota Motor Corp. (TM),
Honda Motor Co. (HMC), and Nissan Motor
Co. (NSANY).
Sales in the Premium Luxury segment increased 14% to 6,093 vehicles
during the month. The segment consists of retail automotive
franchises selling vehicles manufactured by Daimler
AG’s (DDAIF) Mercedes Benz, BMW and Lexus.
On daily selling rate basis, the company’s retail new vehicle unit
sales improved 19% in December 2012. December 2012 had 26 selling
days compared with 27 selling days a year ago.
Last year, AutoNation recorded a 13% increase in new vehicle sales
to 20,958 units in October and 21% growth in sales to 22,571 units
in November. The company registered nearly 16% increase in new
vehicle sales in the fourth quarter of 2012. Domestic segment sales
improved 10%, Import segment sales jumped 20% and Premium Luxury
segment sales climbed 17% in the quarter.
AutoNation witnessed a 20% improvement in new vehicle sales in the
full year 2012. Domestic segment sales went up 14%, Import segment
sales jumped 27% and Premium Luxury segment sales climbed 13% in
the year.
Auto sales in the U.S. grew 9% to 1.4 million vehicles in December
last year and 13.4% to 14.5 million vehicles in the full year.
Improving consumer confidence, falling unemployment rate and
improvement in home sales and prices were mainly responsible for
the remarkable improvement in sales.
Sales were also boosted by strong pent-up demand owing to the aging
vehicles (average age of a car reached 11 years in the U.S.) and
replacement needs for damaged vehicles from Hurricane Sandy. Banks
also supported the sales growth by providing greater access to
loans with lower interest rates.
Recently, AutoNation completed the previously announced
acquisitions of Boardwalk Audi, Boardwalk Porsche, Boardwalk
Volkswagen, McKinney Volkswagen, Park Cities Volkswagen, and Spring
Chrysler Dodge Jeep Ram. With this, the company will own and
operate 50 franchises in Texas. Currently, it retains a Zacks Rank
#2 (Buy).
AUTONATION INC (AN): Free Stock Analysis Report
DAIMLER AG (DDAIF): Free Stock Analysis Report
FORD MOTOR CO (F): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis Report
HONDA MOTOR (HMC): Free Stock Analysis Report
NISSAN ADR (NSANY): Free Stock Analysis Report
TOYOTA MOTOR CP (TM): Free Stock Analysis Report
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