Top U.S. auto retailer AutoNation Inc reported a 2% rise in quarterly revenue on Friday as demand for new vehicles, spare parts and services offset a poor performance in the used-vehicle segment.
The automotive industry is starting to show signs of gradual recovery from a global supply-chain crisis that had curtailed production, enabling dealers such as AutoNation to boost their new-vehicle deliveries to customers.
AutoNation’s revenue from new vehicles and after-sales rose 8% and 7%, while used-vehicle sales fell 8%.
Used-car retailer CarMax Inc had also reported an 86% slump in third-quarter profit in December, along with pausing some hiring, halting certain share buybacks and cutting expenses.
Autonation’s overall fourth-quarter revenue rose to $6.7 billion. Analysts were expecting $6.52 billion, according to Refinitiv IBES data, although it was not immediately clear if the figures were comparable.
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