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Asbury’s Parts & Service Gross Profit Up 14% In Q3

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.

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