FORT LAUDERDALE, Fla., Oct 24 (Reuters) - AutoNation Inc., the nation's largest dealer of new and used vehicles, said on Thursday its profit increased 35 percent in the third quarter on strong car sales and lower costs.
AutoNation said its net income rose to $106.7 million, or 33 cents per share, up from $79.2 million, or 24 cents per share, in the year-ago quarter.
The company had told analysts in July to expect earnings of 28 cents to 30 cents a share.
AutoNation said it expects fourth-quarter earnings per share to be in the range of 25 cents to 27 cents. It also said its 2003 outlook calls for earnings per share of $1.25 to $1.30, and that it expects U.S. sales of new vehicles to decline 3 percent to 5 percent from 2002.
AutoNation has been expanding in recent months, part of a trend among dealership conglomerates to grow by buying out smaller dealers. Its shares have trailed the Standard & Poor's 500 index by about 16 percent since the start of the third quarter.