Sonic Automotive reports 4th-quarter profit lifted by new, used vehicle sales

New, used sales lifts Sonic Auto to 4Q profit

CHARLOTTE, N.C. — Auto retailer Sonic Automotive Inc. said Tuesday sales of both new and used vehicles helped push it to profitability in the fourth quarter following a loss in the year-ago period.

“As we progressed through the fourth quarter and the industrywide new vehicle sales volume rose, we saw dealership profits rise substantially due to our ability to leverage the cost reductions we’ve made throughout the year,” President B. Scott Smith said in a statement.

The company said it made $14.3 million, or 25 cents per share, in the three months ended Dec. 31. That’s compared with a loss of $687.2 million, or $17.14 per share, in the same quarter last year.

Excluding one-time charges, the company made 14 cents per share in the most recent quarter. Its year-earlier loss was also weighted heavily with charges, amounting to 26 cents per share after adjustments.

Revenue rose 10 percent to $1.6 billion.

Analysts surveyed by Thomson Reuters expected 15 cents per share on $1.42 billion in revenue, on average. Such estimates typically exclude one-time items.

The company said new vehicle sales rose 11 percent to $818.3 million, the company said. Used vehicle sales rose 23 percent $376 million.

For the full year, the company made $31.5 million, or 62 cents per share, compared with a loss of $692.3 million, or $17.16 per share, in 2008. Excluding items, the company made 55 cents per share in 2009.

Revenue fell 13 percent to $6.13 billion.

Shares rose 12 cents to $9.79.