The credit crisis hit F&I departments in the third quarter, with these four dealers reporting revenue declines for the segment. Even parts and service had its problems during the quarter. Here’s a look at results for these four dealer groups.
F&I Revenue Down for Group 1, Sonic, Lithia and Asbury
The credit crisis hit F&I departments in the third quarter, with these four dealers reporting revenue declines for the segment.
• Group 1 Automotive Inc. reported income from continuing operations of $9.4 million, a 57.3 percent decrease from the $22.1 million reported during the same year-ago period.
• Revenue for the quarter was $1.4 billion, a 15.9 percent decline from the $1.6 billion posted during the year-ago period. New-vehicle revenue was $832.8 million, a 17.9 percent drop from $1 billion recorded a year ago. Used-vehicle revenue was $246.7 million, a 13.9 percent decline from $286.4 million in 2007.
• F&I revenue dipped to $45.3 million, a 13.4 percent from $52.3 million. Despite these declines, Group 1’s parts and service operations posted a 1.1 percent increase, rising from $174.2 million to $176 million.
• For the first nine months of 2008, net income was $45.3 million, down 32.4 percent from $67 million in the same period of 2007. Total revenues were $4.5 billion, down 5 percent from $4.7 billion reported in the same period of 2007.
• Sonic Automotive Inc. reported income from continuing operations of $11.4 million, compared to earnings of $30.9 million in the year-ago period.
• Revenue for the quarter was $1.7 billion, down from the year-ago figure of $2.1 billion. New vehicle revenue was $987.5 million, down from the $1.2 billion reported in the year-ago quarter. Used-vehicle revenue was $339.5 million, down slightly from $363.8 million in 2007.
• Revenue from parts and service operations dropped from $293 million to $284.1 million in the third quarter. F&I also declined from $53.6 million to $46.5 million in the third quarter 2008.
• For the first nine months of 2008, net income was $26.8 million, down from $82 million in the same period of 2007. Total revenues were $5.6 billion, down from $6 billion in the same period of 2007.
• Lithia Motors Inc. reported a third quarter 2008 income of $2.7 million from continuing operations, a 73.1 percent decline from $10 million in the year-ago period.
• Revenue from the third quarter was $563.2 million, down 19.6 percent from $700.1 million in the year-ago period. New-vehicle revenue was $309.4 million, a 24.2 drop from $408 million. Used-vehicle sales totaled $154.1 million, a 16.4 percent drop from $184.2 million.
• F&I revenue declined 23 percent from $27.4 million to $21.1 million. Parts and service operations dropped slightly from $78 million to $77.6 million, a decline of 0.5 percent.
• For the first nine months of 2008, income loss from continuing operations was $198.7 million, compared to $24.8 million gain from the year-ago quarter. Total revenues were $1.7 billion, down 15.5 percent from $2 billion in the same period of 2007.
• Asbury Automotive Group reported a net income of $6 million for the third quarter of 2008, compared to $19 million in the same quarter of 2007.
• For the third quarter of 2008, total revenues were $1.22 billion, compared to $1.47 million in the prior-year period.
• F&I revenue was $34.2 million, an 18 percent decline from $41.7 million reported during the year-ago period. Meanwhile, revenue from parts and service increased 4 percent from $174.7 million to $182 million.
• For the first nine months of 2008, net income was $27.4 million compared with $40 million in the same period of 2007. Total revenues were $3.82 billion, compared to $4.35 billion in the same period of 2007.
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