Lithia posts 2nd-quarter gains

Lithia Motors reported a net profit of almost $3.7 million in the second quarter of 2009, a dramatic turnaround from its losses in the first three months of the year.

The Medford-based auto retailer today reported a net profit of $3.663 million in the second quarter, a major upswing from its $243.784 million loss reported in the second quarter of 2008.

Despite faltering new-car sales, which produced a 24.4 percent revenue decline to $402 million, down from $532 million for the corresponding period in 2008, Lithia produced its best bottom-line results since announcing major cutbacks in the spring of 2008.

Lithia Chairman and Chief Executive Officer Sid DeBoer said he was pleased with improved gross margins and used-vehicle retail sales throughout the year.

Same-store retail new-vehicle sales declined 36.8 percent, while retail used-vehicle sales increased 2.3 percent compared to the same quarter last year. Service, body and parts same-store sales declined 5.2 percent.

For the six-month period ending June 30, total sales declined 27 percent to $769 million from $1.05 billion in the same period last year. Same-store new-vehicle sales tumbled 37.8 percent, retail used-vehicle sales decreased 4.4 percent and service, body and parts sales decreased 5.5 percent.

— Greg Stiles

Share This Story