Group 1 Records All-Time High for Gross Profit in Q1
Group 1 Automotive Inc. set new records for total gross profit, as well as first-quarter revenue and F&I gross profit per vehicle sold.
HOUSTON — Group 1 Automotive Inc. set new records for total gross profit, as well as first-quarter revenue and F&I gross profit per vehicle sold.
First-quarter net income stood at $23.1 million, a 49.1 percent increase. Total revenue rose 18 percent to $1.66 billion, a new first-quarter record and a second best all-time high in the company’s history.
Total gross margin came in at 15.6 percent, as gross profit grew 17.4 percent from a year ago to an all-time record of $260.4 million. Additionally, new-vehicle gross profit increased 23.5 percent on 16.3 percent higher revenues, as the company retailed 13.1 percent more units. The average selling price also expanded 2.9 percent to $32,674.
Used-vehicle sales for the group surged 24 percent, while the average selling price increased 3.4 percent to $20,000, driving gross profit growth of 25.9 percent on 28.3 percent higher revenues.
F&I gross profit per retail unit came in at $1,175, a record first-quarter result. Parts and service revenues increased 9.3 percent from the prior year, which company officials attributed to growth in customer-pay, wholesale parts and collision businesses.
"Group 1's strong, first-quarter operating and financial results included record-setting revenues, gross profit and earnings for our shareholders," said Earl J. Hesterberg, Group 1's president and chief executive officer. "Based on the first-quarter results, we now expect new vehicle industry sales of 14.5 million units in 2012."
More Auto Finance

Interest Rates Further Squeeze Auto Consumers
Last month’s hike and a potential second increase this month add to a growing list of inflation woes that could continue to dent overall car sales.
Read More →
Mind Your Process
Consistent steps taken in various aspects of the F&I office can make valuable differences over time, similar to an outline for a best-selling book.
Read More →
Top Five Credit Application Fraud Flags
Compliance audits regularly reveal bad habits that can lead to fraud charges and should have been stamped out decades ago.
Read More →
More Auto Loans for the Taking in August
Riskier categories were on the uptick for the month as lenders loosened access in several areas while balancing out the exposure in another, Cox Automotive reported.
Read More →
July Was Hot for Auto Borrowers
Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.
Read More →
Dealer Lender Preferences Revealed
When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.
Read More →
Auto Refi Savings Surge
Consumers with 84-month auto loan terms who refinanced saved the most on monthly payments, according to a new report by auto refinancing provider Caribou.
Read More →
Subaru Enters Lending Business
The automaker follows other brands in adding captive financing in the U.S., and says the move will strengthen its position here.
Read More →
Positive Equity Reaches Record High
Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.
Read More →
Dealerships Are Paying the Price for Extended Car Loans
Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.
Read More →