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AutoNation’s Customer-Pay Revenue Increased 5% In Q2

AutoNation’s Customer Care business (the service, parts and collision side) saw its sales rise 5.3 percent to $602.50 million and its gross profit increase 3.3 percent to $253.40 million in second quarter of 2012. Same-store sales were up 5.1 percent, following a 4-percent increase in the first quarter of 2012.

“We are very pleased with our ability to grow our Customer Care business despite being at an industry low point for units in operation in the dealership service space that dates back to the mid-1980s,” said Mike Maroone, president and chief operating officer. “The units in operation base is expected to begin growing again in 2013.”

Customer-pay revenue was up 5 percent and gross profit was up 2 percent. This was the eighth consecutive quarter of year-over-year gains in customer-pay gross as well as revenue. Customer-pay service gross profit benefited from improved market conditions and better marketing of products and services in the service department.

Management also reported “strong growth” in its wholesale parts business and collision business. Together, they represented 25 percent of Customer Care’s gross profit improvement.

Billed as “America’s largest automotive retailer,” AutoNation owns and operates 260 new vehicle franchises, which sell 32 brands across 15 states.

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