AutoNation profit spurs spending on acquisitions

Posted on Friday, October 30th, 2009 at 2:47 PM EDT.

AutoNation Inc., the largest U.S. dealership group, posted its biggest profit of the year and said it would boost spending by 65 percent next year to update and buy stores, Automotive News reported.

The net income of $65 million compares with a $1.4 billion net loss in the previous third quarter, the trade paper said. “We are optimistic for the long-term prospects of the auto industry based on the successful restructuring of the domestic auto industry, the move to a demand-pull system and the rationalization of the dealer network,” CEO Mike Jackson said in a statement.

Third-quarter revenues fell to $2.9 billion from $3.4 billion in the same period in 2008, the paper said. Revenue declined in every category, including new and used vehicles, parts and service and finance and insurance, the story said. (Automotive News)

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