AutoNation 4Q profit rises 3 pct as more cars sold

FORT LAUDERDALE, Fla. (AP) -- AutoNation Inc.'s fourth-quarter net income climbed 3 percent as it sold more new and used cars, particularly luxury and U.S. brands.

The car and truck retailer reported Thursday that it earned $69.4 million, or 49 cents per share, in the quarter. That compares with net income of $67.3 million, or 45 cents per share, a year earlier.

Excluding debt refinancing costs, adjusted earnings from continuing operations were 51 cents per share.

Analysts predicted earnings of 49 cents per share, according to a FactSet survey.

Revenue for the three months ended Dec. 31 rose 13 percent to $3.68 billion from $3.25 billion, beating Wall Street's estimate of $3.55 billion.

Sales of new vehicle units, AutoNation's largest division, increased 13 percent in the quarter and were up 10 percent in stores open at least a year. That's a key retail metric that excludes newly opened or closed stores.

Sales of domestic and luxury autos were particularly strong. AutoNation considers autos made by General Motors Co., Ford Motor Co. and Chrysler Group LLC to be domestic. They notched a 21 percent unit sales increase. Mercedes-Benz, BMW AG and Lexus are the primary luxury brands, and those sales climbed 28 percent.

Germany's Daimler AG makes Mercedes, while Japan's Toyota Motor Corp. makes Lexus.

Toyota, Honda Motor Co. and Nissan Motor Co. make up AutoNation's import segment, which posted a 3 percent unit sales increase. Toyota and Honda had a tough year in 2011 because of supply disruptions stemming from Japan's March earthquake and tsunami and flooding in Thailand.

AutoNation's full-year net income rose 24 percent to $281.4 million, or $1.91 per share, from $226.6 million, or $1.43 per share, in 2010. Revenue rose 11 percent to $13.83 billion from $12.46 billion.

AutoNation also plans to buy back up to $250 million more shares of its common stock.

AutoNation, based in Fort Lauderdale, Fla., owns 258 new vehicle franchises in 15 states.

Its stock added 64 cents, or 1.8 percent, to $36.98 in morning trading.