Jul30
ETROIT (Reuters) -- Auto dealership chain Sonic Automotive Inc. posted a 59 percent decline in quarterly earnings on Tuesday, hurt by an industrywide slowdown in U.S. new vehicle sales.
The No. 3 U.S. auto retailer said net income fell to $10.9 million from $26.4 million during the same quarter a year earlier.
Revenue fell 1.7 percent to $ 1.98 billion.
Same-store sales fell 7.8 percent, hurt by an 11.7 percent decrease in new-vehicle revenue.
The company's parts and service revenue fell 0.8 percent, while finance and insurance revenue fell 2.1 percent. Used vehicle revenue rose 2.7 percent.
Automakers and dealers have seen U.S. light vehicle sales drop for a third consecutive year amid a weak economy and a shift in consumer demand toward smaller vehicles and away from pickup trucks and SUVs due to soaring gas prices.
Earlier this month, Sonic warned that full-year earnings would be lower than expected due to the weak U.S. auto market.
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This story posted by LeaseTrader.com, the automotive service company that lets people transfer out of their Car Leases early. If you're looking to swap a lease or transfer out of your car lease, please visit www.leasetrader.com