Asbury Registers 10% Rise In Net Income
News: US-based automotive dealer Asbury Automotive Group registered a 10% year-on-year (y-o-y) rise in net income to US$22.7mn in Q313 from US$20.7mn in Q213. Gross profit climbed 16% y-o-y to US$225.3mn and overall revenue jumped 17% y-o-y to US$1.4bn in the reported period. New vehicle revenue rose 13% y-o-y with an 11% y-o-y increase in gross profit in Q313, while used vehicle revenue climbed 33% y-o-y with a 17% y-o-y rise in gross profit. Finance and insurance revenue jumped 24% y-o-y in the reported period, while parts and service revenue climbed 9% y-o-y.
BMI View: Looking to boost its premium segment presence in the south east of the US and Texas is Asbury Automotive Group, which has acquired one VW and one Bentley dealership in Atlanta. Ranked seventh among US auto dealers, Asbury is planning to acquire stores to contribute an additional US$400-600mn in annual revenue over the next three years. The two latest acquisitions should add US$60mn.