LIthia Motors reports drop in earnings

Despite improved revenue figures, Medford-based auto retailer Lithia Motors Inc. saw a decline in net earnings during the second quarter and fell short of analysts’ predictions.

Lithia Motors’ revenue swelled to $885.1 million from $801.2 million during the second quarter a year ago. However, net earnings fell 33 percent to $7.94 million, or 38 cents a share, from $11.9 million, or 56 cents a share, for the period in 2006. Analysts polled by Thomson Financial had forecast a per-share profit of 54 cents on revenue of $887 million.

Lithia will launch a new standalone used car venture, known as L2, in Loveland, Colo., next month and follow later this year with two more in Texas.

The company plans to sell five dealerships, primarily selling domestic brands, and a body shop in metropolitan markets, including California, in the near future.

— Greg Stiles

Share This Story