Group 1 Auto reports record profits, driven by strong used car sales

Group 1 Auto reports record profits, driven by strong used car sales

Shoppers are pushed by rows of autos at Sterling McCall Toyota on the Southwest Freeway. It’s a Group 1 Automotive dealership.

The Houston-based auto retailer on Thursday reported internet income of $56.5 million, or a report second quarter extreme of $2.72 per share. Revenues grew by 44 % over the an identical interval closing yr.

CEO and president Earl Hesterberg attributed the surge in product sales to strong used automotive product sales throughout the U.S. and United Kingdom. The company provided 28,484 used autos throughout the U.S. and eight,501 throughout the U.Okay. in the midst of the second quarter, an increase of 13 % and 46 % respectively over the an identical interval closing yr.

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New autos product sales, however, fell. by 1 % throughout the U.S. and by 1.5 % in Houston, concurrently oil prices have stabilized, Hesterberg acknowledged. Although consumer confidence is rising, hiring throughout the vitality sector has not been very important enough to affect new automotive product sales, he acknowledged.

Nonetheless, Hesterberg acknowledged he believes vitality jobs will return and enhance automotive product sales in the end.

“We anticipate this to be a tailwind in the end, merely not throughout the second quarter,” he acknowledged.

Look at once more later at HoustonChronicle.com for further particulars on this story.

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