America’s largest automotive retailer, AutoNation, has reported 2004 fourth-quarter net income of $US116 million or $0.43 per share, compared to $87 million or $0.31 a share a year ago.
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For full-year 2004, the company made net income of $396 million or $1.45 per share, compared to $515 million or $1.80 per share in 2003, which included a $0.44 per share benefit from the first-quarter 2003 IRS tax settlement.
Fourth-quarter 2004 revenue totalled $4.8 billion, an increase of $0.4 billion year on year, resulting from revenue growth in new vehicles of 8%, retail used vehicles of 10%, parts and service of 7% and finance and insurance of 12%.
Selling, general and administrative expense (SG&A) in the quarter was $534 million or 70.8% of total gross profit. Operating income for the fourth quarter was $193 million, a fourth quarter record. Excluding special items, operating income for the fourth quarter was up 21%.
AutoNation chairman and CEO Mike Jackson said: “[Our] performance in the fourth quarter was driven by strong revenue growth resulting from ongoing operational enhancements and an improved industry environment, along with continued improvements in our industry-leading cost structure and the benefit of a streamlined regional management structure.
“In addition, our Florida and Southeast markets performed extremely well as they recovered from four hurricanes that affected third-quarter results.”
At the end of the fourth quarter, AutoNation’s new vehicle inventory was 53 days compared with 71 days a year ago, a decline of 17,000 units, or 18%.
Jackson added: “Looking ahead, we believe that in 2005 industry sales of new vehicles will be nearly 17 million units for the seventh year in a row.”
