(Reuters) – Top U.S. auto retailer AutoNation Inc on Thursday reported a slight drop in second-quarter revenue, hit by a steep decline in new vehicle sales as strained global supply chains made it harder to replenish depleted inventories.
Revenue from new vehicle sales tumbled 14% from a year earlier, the company said, while warning of continued tight inventory.
Carmakers’ production lines remain under pressure from a global semiconductor chip shortage that has crimped their ability to cater to strong demand.
Meanwhile, used vehicle revenue for Auto Nation increased 13% from a year earlier. The company on Thursday also announced it would acquire California-based CIG Financial as it looks to bolster the used-vehicle business.
AutoNation said new vehicle gross profit per unit jumped 47% in the quarter.
Net income fell to $376.3 million from $384.8 million. On a per share basis, earnings rose to $6.48 from $4.83.
Auto Nation said it had repurchased 3.7 million shares for about $404 million during the quarter.
Revenue dipped 1.6% to $6.87 billion.
(Reporting by Kannaki Deka in Bengaluru; Editing by Sriraj Kalluvila)
