Asbury Automotive sells more cars, earnings up
Asbury Automotive Group, the Duluth automotive retailer and service company, saw its earnings rise as vehicle sales rose.
The company reported earnings of $12 million for the third quarter, or 36 cents per diluted share as compared to $10 million or 30 cents per diluted chair for the year prior.
Asbury took charges related to buying back $25 million of convertible notes that were due in 2012 and paying off the lease on its former office space in New York, senior vice president and chief financial officer Craig Monaghan said. Without those charges, earnings would have been 42 cents a share.
Revenues from the sales of used vehicles increased 19 percent, while revenues from new vehicle sales were up 6 percent over the like period a year ago. Monaghan said the company was "quite happy" considering the year-ago figures included the government's cash-for-clunkers program.
"In this economy, to be up that amount feels good," Monaghan said.
Still, president and CEO Charles Oglesby said, shoppers are mostly shopping for cars because they need them, not because they want them. He expects that to begin to shift in the coming months.
About the Author
Arielle Kass covers Gwinnett County for The Atlanta Journal-Constitution. She started at the paper in 2010, and has covered business and local government beats around metro Atlanta. Arielle is a graduate of Emory University.
