I thought January 26th would never get here. ; ) http://www.autonews.com/apps/pbcs.dll/article?AID=/20120126/RETAIL07/120129934/1422 AutoNation posts record profits as sales recover from quake constraints Amy Wilson Automotive News -- January 26, 2012 - 7:06 am ET "After constraints during the middle of the year, rebounding new and used vehicle sales drove net income to record levels at AutoNation Inc. during the fourth quarter. "The nation's largest auto retailer reported net income of $69.4 million for the fourth quarter, up 3.1 percent. Full-year net income rose 24.2 percent to $281.4 million. AutoNation, in a statement, said it set an all-time profit record on an adjusted per-share basis for both the fourth quarter and the full year. "For the fourth quarter, total revenue rose 13 percent to $3.7 billion as new and used unit sales rose 11 percent. For the full year, revenue jumped 11 percent to $13.8 billion. AutoNation said gross profit per vehicle rose by just over 2 percent in the quarter to $2,451. Gross profit from finance and insurance jumped 5.4 percent to $1,223 per vehicle. "The fourth quarter capped a year in which supply disruptions from the Japanese earthquake limited industry sales growth â but the resulting vehicle scarcity helped retailers get top dollar from buyers. AutoNation improved in all areas of its business, CEO Mike Jackson said. "This year should bring even better sales, Jackson said. He is predicting new vehicle sales of about 14 million units in 2012, a gain of more than 10 percent over 2011. "We are looking forward to the continued recovery in auto retail, buoyed by accelerated product offerings, robust consumer credit and strong replacement demand," Jackson said in a prepared statement. "Jackson noted that the average car on the road today is 11 years old. That will bring new buyers to the showroom who can't wait any longer to replace their old cars." Everything today makes so much more sense when you look at it from a demand perspective. ABSS! ; )
This looks to be good data, but I don't see anything on units so I cannot say how much of this is simply due to price/inflation. It certainly details that a lot of it is higher profit in financing, but the real test is unit growth. Do you have that? I'll see if I can find it.
I found it. While I do not trust the CNW data (much like the shiller for home data is constantly revised) AutoNation's data is verified and cannot be misreported. For the 4th quarter, those are good numbers. I would like to see the annual numbers when they are summarized. Congratulations, Ricter. You've finally found an overall positive economic report!
Lol, but...? There's gotta be a "but" coming. Good fight. Now, I need to counter this groin shot you've given me re money debasement.
I've noticed a tremendous increase in advertising for auto's esp in the newspaper and lately direct mail in mailbox. Reminds me of the MO after 911 to stimulate the economy. Sell cars. Also I read, there are fewer young people getting their drivers license, what this holds for the future remains to be seen with used car sales.
No fight, that was a positive economic report. It doesn't refute channel stuffing, and it's not indicative of the auto industry as a whole, nor is it an annual report showing y/y comparison. But it was a positive report, and I told you that if I saw one I would admit it was so. I am not a negative nancy unless there is reason for it.