Lithia Motors Inc., benefiting from higher new and used vehicle demand, posted a fourth-quarter profit of $4.4 million compared to a loss of $1.5 million a year ago. Revenues rose 31 percent to $555.6 million from $424.8 million a year ago.

The nation’s ninth-largest dealership group also raised its 2011 revenue target by 16 percent to a range between $2.3 billion to $2.45 billion. The company cited the improved outlook for new and used vehicle demand, reported Automotive News.

During the fourth quarter, Lithia said new vehicle same-store revenue increased 34.4 percent, and used vehicle retail same-store sales rose 21.1 percent. Service, body and parts same-store sales increased 5.4 percent.

The Oregon company operates 83 dealerships representing 25 brands across 12 states.

"The economic recovery continued to accelerate through the fourth quarter,” Lithia CEO Sid DeBoer said in a statement. “All states we operate in posted double digit increases in same store sales."

For all of 2010, Lithia earned $13.7 million on revenue of $2.1 billion, compared to $9.15 million in earnings on revenue of $1.8 billion in 2009.

Last year, Lithia’s same-store new vehicle sales increased 19.5 percent, used vehicle retail same store sales rose 19.3 percent and service, body and parts same store sales inched up 0.4 percent.