Asbury Automotive Group Inc.’s internet earnings declined 2.5 % and its income was down 5.3 % throughout a second quarter that drew from fewer places than a yr earlier — together with a Texas location the group offered in Might.
Nevertheless, the magnitude of declines reported Tuesday was smaller than Asbury skilled throughout the first quarter, when internet earnings fell 24 % and income 8.4 % in contrast with the primary quarter of 2022.
“Our group did an excellent job with profitability and self-discipline on expense management,” Asbury CEO David Hult mentioned in an announcement accompanying the discharge of second-quarter earnings. “We proceed to be adaptive within the present market circumstances, with our outcomes pushed by the energy of our group members, our dealerships and our willpower to ship the most effective guest-centric expertise.”
Final yr, Asbury offered 4 places within the first quarter and three extra within the second quarter to adjust to Toyota and Lexus regional retailer depend limits within the wake of its December 2021 purchases of Larry H. Miller Dealerships and Stevinson Automotive. Asbury offered 9 extra dealerships throughout the fourth quarter, a transaction Hult mentioned represented “a possibility” and concerned a “honest worth” but in addition was achieved in anticipation of a giant acquisition that didn’t materialize.
This yr on Might 15, the midpoint of the second quarter, Asbury offered David McDavid Acura in Austin, Texas, to Umansky Automotive Group of Memphis, Tenn.
Asbury mentioned Tuesday that it earned $10.2 million from divestitures throughout the quarter.
On a same-store foundation, Asbury’s second-quarter income declined 0.9 % from a yr earlier to $3.7 billion, whereas its gross revenue dropped 7.1 % to $711.8 million.
Highlights from Asbury’s second-quarter earnings report embrace:
Q2 income: $3.7 billion, down 5.3 % from a yr earlier
Q2 internet earnings: $196.4 million, down 2.5 % from a yr earlier
Q2 adjusted internet earnings: $188 million, down 16 %
Gross sales: 38,260 new autos, down 1.1 %; 31,623 used autos, down 21 %
Asbury, of Duluth, Ga., ranks No. 5 on Automotive Information‘ listing of the highest 150 dealership teams based mostly within the U.S., with retail gross sales of 151,179 new autos in 2022.