Lithia Q1 Profit Beats Expectations as Chrysler Business Declines

DETROIT - Lithia Motors Inc., the ninth-largest U.S auto dealership group by new-vehicle sales in 2009, posted a quarterly profit on Tuesday that beat Wall Street estimates, boosted by higher sales of used cars, Reuters reported.

Profit on continuing operations, excluding one-time charges and including approximately 5.3 million more shares in 2010 due to a recent equity offering, was 9 cents per diluted share, beating analysts' expectations of 6 cents per diluted share and last year's loss of 1 cent per diluted share.

Lithia had 25 percent more shares at the end of the first quarter than a year ago.

Net income declined 4.7 percent to $1.27 million, or 5 cents per share, compared with $1.33 million, or 6 cents per share, in the first quarter of 2009.

Revenue rose 13.4 percent to $463 million.

Oregon-based Lithia features U.S. domestic brands, led by Chrysler and General Motors. The dealership group focuses on lower-priced new vehicles and used vehicles.

In the first quarter, Chrysler accounted for 27 percent of sales of Lithia's new vehicle unit sales, down from 36 percent share a year ago when Chrysler was boosting sales with high incentives as it faced bankruptcy.

Chrysler Group LLC is managed by Italy's Fiat and emerged from a government sponsored Chapter 11 bankruptcy in June 2009.

Lithia's same-store sales rose 11.5 percent. Stripping away Chrysler, same-store new vehicle sales rose 25 percent.

General Motors accounted for 16 percent of Lithia sales, compared with 14 percent a year ago. Toyota Motor Corp. accounted for nearly 15 percent of the dealership group's sales, near year-ago levels.

Lithia on Tuesday gave an outlook for its second-quarter performance at 19 to 21 cents per diluted share.

Full-year 2010 guidance increased to a range of 63 to 69 cents per diluted share, based on better-than-expected first-quarter results and slightly stronger sales, Lithia said.

Lithia has 85 stores in 12 states.