AutoNation Inc.
(
AN
) witnessed an outstanding performance in new vehicle sales in June
2012 compared with the corresponding month last year. Sales in the
month soared 38% year over year to 22,862 vehicles. The hike was
attributable to higher demand for imported vehicles along with
higher sales across all segments.
Sales in the Domestic segment escalated 25% to 7,066 vehicles. The
segment comprises retail automotive franchises that sell vehicles
manufactured by
Ford Motor Co.
(
F
),
General Motors Company
(
GM
) and Chrysler.
Sales in the Import segment surged 56% to 11,579 vehicles. The
segment comprises retail automotive franchises that sell vehicles
produced by
Toyota Motor Corp.
(
TM
),
Honda Motor Co.
(
HMC
) and
Nissan Motor Co.
(
NSANY
).
Sales in the Premium Luxury segment boosted 20% to 4,217 vehicles
during the month. The segment consists of retail automotive
franchises selling vehicles manufactured by
Daimler AG
's (
DDAIF
) Mercedes Benz, BMW and Lexus.
AutoNation has recorded a 12% rise in new vehicle sales to 20,534
units in April 2012 and 45% growth in sales to 23,763 units in May
2012. The company registered nearly 31% increase in new vehicle
sales in the second quarter of 2012. Domestic segment sales jumped
18%, Import segment sales went up 47% and Premium Luxury segment
sales shot up 18% in the second quarter.
Auto sales in the U.S. recovered drastically in June 2012.
Seasonally adjusted annual rate (SAAR) went up 22% to 14.1 million
vehicles, according to Autodata Corp. The major factors behind this
remarkable improvement are lower gas prices, low interest rates and
driving demand. Besides, merchandising promotions (such as
zero-interest loans) and price incentives ahead of Independence Day
also encouraged consumers to buy new vehicles.
Headquartered in Fort Lauderdale, Florida, AutoNation is the
largest automotive retailer in the U.S. The company owns and
operates about 260 new vehicle franchises that sell 32 brands
located in the major metropolitan markets in 15 states. The company
offers an array of automotive products and services, ranging from
new vehicles, used vehicles, vehicle maintenance and repair
services, vehicle parts, vehicle protection products to other
aftermarket products.
Currently, AutoNation retains a Zacks #2 Rank, which translates
into a short-term (1 to 3 months) Buy rating. We have a long-term
(more than 6 months) Neutral recommendation on the stock.
AUTONATION INC (AN): Free Stock Analysis Report
DAIMLER AG (DDAIF): Free Stock Analysis Report
FORD MOTOR CO (F): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis Report
HONDA MOTOR (HMC): Free Stock Analysis Report
NISSAN ADR (NSANY): Free Stock Analysis Report
TOYOTA MOTOR CP (TM): Free Stock Analysis
Report
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