FORT LAUDERDALE, Fla. — — AutoNation Inc. said Thursday its second-quarter profit tumbled 33 per cent as sales fell on a drop in demand for new vehicles.
The Fort Lauderdale, Fla.-based company also announced plans to cut 1,300 jobs and sell underperforming stores as part of a plan to reduce its costs by $100-million (U.S.) a year.
The largest U.S. automotive retailer earned $51.8-million, or 29 cents per share, compared with $77.3-million, or 37 cents per share, for the same quarter in 2007.
Earnings from continuing operations fell to $52.6-million, or 29 cents per share, from $79.3-million, or 38 cents per share.
Autonation Inc.
Excluding stock-option expenses, income tax adjustments and franchise impairments, the company posted an adjusted profit from continuing operations of $59-million, or 33 cents per share, compared with an adjusted profit of $76-million, or 36 cents per share, in the 2007 quarter.
Analysts polled by Thomson Financial expected a profit from continuing operations of 30 cents per share. Analyst estimates generally exclude one-time items.
AutoNation's sales fell 13 per cent to $3.91-billion from $4.48-billion in the year-ago period. Analysts, on average, expected $4.09-billion in revenue.
