Parts and service gross profit rose 13.9 percent to $94 million for the Asbury Automotive Group (Duluth, GA) in the third quarter of 2013. Sales increased 8.6 percent to $154 million. The $12.20-million growth in parts and service revenue came primarily from …
• A $5.10-million (or 5 percent) increase in same-store customer-pay revenue;
• A $2.50-million (13 percent) increase in same-store warranty revenue; and
• $3.50 million derived from acquisitions.
Same-store parts and service gross margin increased 270 basis points, climbing from 58.2 percent a year ago to 60.9 percent for the three months ended Sept. 30, 2013. Management attributed the growth to increases in Asbury’s higher-margin parts and service businesses, including a 30-percent increase in gross profit from the reconditioning and preparation of vehicles, a 17-percent increase in warranty work and a 5-percent increase in customer-pay parts and service gross profit. Wholesale parts gross profit increased 2 percent
Asbury operates 79 retail auto stores, encompassing 100 franchises for the sale and service of 29 different brands of American, European and Asian automobiles.
We encourage you to add your comments below concerning this article.