Group 1 Automotive
) announced that it is evaluating the extent of damage at seven out
of its eight import and domestic dealerships in Oklahoma City, OK
caused by the hail storm on May 29.
According to the assessment, some of the facilities and
inventories consisting of new and used vehicles were damaged. The
company has informed that it is insured but it needs to incur after
tax charges related to deductibles in the range of $1.8 million to
$2.3 million or 7 cents to 10 cents per share in the second quarter
The affected dealerships of Group 1 will continue to operate,
providing an array of services along with offering vehicle parts to
its customers and collision centers. However, sales operation will
These seven dealerships accounted for 5.8% of new vehicles sales
in 2011. These dealerships of Oklahoma City, Okla.consist of 10
General Motors Company
) Buick, GMC and Chevrolet; Chrysler's Chrysler brand, Dodge and
Nissan Motor Co.
Toyota Motor Corporation
Honda Motor Co.
) and its luxury division Acura.
Group 1's three other dealerships located in the Tulsa area and
one in the Oklahoma City are in full operation and were not
affected by the storm. The company plans to replace the damaged
inventories as soon as possible together with its manufacturing
partners. It will also source inventories form other
Group 1 Automotive posted its first quarter 2012 earnings per
share of 97 cents, surpassing the Zacks Consensus Estimate of 89
cents and the year-ago earnings of 64 cents. Profits went up 49.1%
to $23.1 million compared with $15.4 million in the year-ago
The company's revenues for the quarter came in at $1.66 billion,
up 18.1% from $1.41 billion in the year-ago quarter. Revenues from
new vehicles hiked16.3% to $912.6 million and used vehicles swelled
28.3% in the reported quarter.
Headquartered in Memorial City of Houston, Texas, Group 1
Automotive was founded in 1997. The company is one of the largest
automotive retailers in U.S., which provides 31 automotive brands.
It has 120 automotive dealerships, 152 franchises and 28 collision
centers in U.S. and UK. The company offers new and used cars,
light trucks and is also engaged in sales financing activities.
In addition, the company provides insurance contracts,
maintenance and repair services along with vehicle parts to its
customers. It competes with
Penske Automotive Group Inc.
). Currently, the company retains a Zacks #2 Rank, which implies a
Buy rating for the short term.
AUTONATION INC (AN): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis Report
GROUP 1 AUTO (GPI): Free Stock Analysis Report
HONDA MOTOR (HMC): Free Stock Analysis Report
NISSAN ADR (NSANY): Free Stock Analysis Report
PENSKE AUTO GRP (PAG): Free Stock Analysis
TOYOTA MOTOR CP (TM): Free Stock Analysis
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