Houston-based Group 1 Automotive saw its parts and service gross profit increase 13.2 percent to $121.63 million in the third quarter of 2013 on revenue growth of 13.5 percent. Same-store parts and service revenue increased 8 percent to $226.98 million, driven by increases in all aspects of the parts and service business: collision, customer-pay, warranty and wholesale parts.
U.S. same-store parts and service revenues increased 7.8 percent, or $15.50 million, for the three months ended Sept. 30, 2013, driven primarily by
• A 23.2-percent increase in collision revenue;
• A 5.1-percent increase in customer-pay parts and service sales;
• An 8-percent increase in warranty revenue; and
• A 5.2-percent increase in wholesale parts revenue.
Same-store gross profit increased 9.5 percent in the third quarter of 2013. U.S. same-store parts and service margins improved 80 basis points, primarily because of improved profitability in the warranty and customer-pay parts and service business units, as well as a higher volume of internal work between the parts and service departments of Group 1’s dealerships and the new and used vehicle departments, which was generated by improved new and used retail vehicles sales volume.
Group 1 owns and operates 141 automotive dealerships, 179 franchises, and 35 collision centers in the United States, the United Kingdom and Brazil.
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