Dealer group Lithia Motors announced July 31 a 56 percent rise in net earnings to $7.9 million in the second quarter of 2002 compared to $5.1 million in the second quarter of 2001.

Earnings per share rose 16 percent to $0.43 per share versus $0.37 in the same period last year.

Net earnings for the first six months of 2002 rose 81 percent to $14.3 million compared to $7.9 million in the same period last year. Earnings per share increased 47 percent to $0.85 per share.

Results for the second quarter and first six months of last year included goodwill amortization, which has been eliminated this year pursuant to new financial accounting standards.

Net income, reflecting this change, would have been $5.6 million and $9.1 million, respectively.

Lithia Motors’ revenues increased 26 percent to $584.3 million in the second quarter of 2002 from $462.1 million in the second quarter of 2001. For the first six months of 2002, revenues increased 26 percent to $1.11 billion from $882.2 million in the first six months of 2001.

For the second quarter, new vehicle sales increased 25 percent, used vehicle sales increased 30 percent, parts/service sales increased 21 percent, and finance/insurance sales increased 25 percent. Lithia's retail used/new ratio for the quarter was 0.9:1.

Finance and insurance income per retail unit increased $50 to $995 per unit compared to $945 in the second quarter of last year.

For the first six months, new vehicle sales increased 25 percent, used vehicle sales increased 32 percent, parts/service sales increased 18 percent, and finance/insurance sales increased 27 percent. Lithia's used/new ratio for the first half of the year was 0.9:1.

Finance and insurance income increased $67 to $975 per unit.