Medford, OR-based Lithia Motors saw its service, body and parts gross profit climb 6.4 percent to $43.76 million in the third quarter of 2012 as revenue grew 7.1 percent to $90.63 million. Customer-pay revenue increased 6.9 percent to $51.83 million. Warranty revenue fell 1 percent to $13.69 million. Wholesale parts revenue increased 9.9 percent to $16.40 million, while body shop revenue rose 17.8 percent to $8.71 million.
On a same-store-sales basis, Lithia’s service, body and parts business continued to experience overall growth, rising 6.1 percent.
Same-store customer-pay business grew 5.8 percent to $50.40 million, marking the company’s 13th consecutive quarter of same-store customer-pay sales improvement. Same-store wholesale parts sales increased 8.5 percent to $16.04 million, while same-store body shop sales rose 17.8 percent to $8.71 million.
Same-store warranty sales fell 1.7 percent to $13.30 million, as work continues to be impacted by declining units in operation from 2008, 2009 and 2010, as well as the increased warranty work in 2011 associated with Toyota recalls.
“We continue to anticipate lower warranty revenue for the remainder of 2012 and into 2013 due to a lower number of units in operation from lower sales over the last few years,” said Bryan DeBoer, president and CEO, on a conference call with members of the financial community. “Warranty comprises 15 percent of our service, body and parts business, and can be more than offset by concentrating on growing the other 85 percent of the non-warranty activity.”
Lithia Motors is the ninth largest automotive retailer in the United States, selling 29 brands of new vehicles and all brands of used vehicles at 87 stores in 11 states.
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