United Auto Group announced October 24th that third quarter earnings from its new and used vehicle dealerships rose 21 percent on strong vehicle sales.

The company reported net income of $13.5 million, or $0.38 per share, compared with $11.2 million, or $0.40 per share in the same period of 2000. Per-share results reflect a 26% increase in shares outstanding.

Revenue increased 20% to $1.6 billion from $1.3 billion, led by a 21% increase in new-vehicle revenues. More than half of United Auto's new-vehicle sales come from import brands, which have flourished this year.

While the September 11th attacks depressed sales and customer traffic at dealerships around the country, zero-interest loan deals started by General Motors Corp. and offered by several other automakers have boosted sales this month to near-record levels.

"Despite the effects of the tragic events that occurred on September 11th, which initially decreased dealership traffic, we have seen our level of business increase," Chairman Roger Penske said in a statement.

United Auto estimated its 2001 earnings will be at least $1.25 a share. For 2002, it estimated earnings will be at least $1.45 a share before the impact of new accounting rules involving goodwill amortisation, with same-store revenues up 3% to 5%.

Its shares were down $0.38 at $16.50 in trading Wednesday on the New York Stock Exchange. Its shares have underperformed those of AutoNation Inc., the nation's largest dealership group, by more than 5% since september 11th.