AutoNation Sees Drop in New Car Sales for the 4th quarter

07 February 2008

In another report quarterly earnings reflects economic concerns in the United States, the country's largest car dealership, AutoNation, Inc. posted profits lower than expected numbers, Thursday, February 7, with a particularly damaging reports from Florida and California.

For the fourth quarter of this year, net income of the company has fallen by 31 per cent to $ 51.7 million compared to a previous level of 75.2 million. Net profit stood at 278.7 billion dollars down from 316.9 billion in 2006.

Florida and California combined account for about half the market of the company for new vehicles and about 20 percent of new vehicle sales for the nation. The current retail market in these two areas has been described as "challenging" in a statement issued by Mike Jackson, chief executive officer.

He added, however, that "AutoNation continues to have confidence in California and Florida, and the views as healthy markets in the long term. We believe that, in 2008, American industry sales of new vehicles will decrease to the mid-15 million unit level of 16.1 million units in 2007. Nevertheless, the recent decision by the Federal Reserve to reduce interest rates could improve the outlook for the automobile detail in the second half of 2008. "

AutoNation is headquartered in Fort Lauderdale, Florida, and employs about 25000 workers in 322 franchises in 15 states.