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UPDATE 1-Asbury stronger earnings boosted by services

(Adds details throughout, changes dateline from NEW YORK)

DETROIT, Oct 30 (Reuters) - Asbury Automotive Group Inc. on Thursday posted higher third-quarter earnings on strong performances from its repair business and its finance and insurance unit.

Stamford, Connecticut-based Asbury said its earnings rose to $16.2 million, or 50 cents per share, from earnings of $14.6 million, or 43 cents per share in the year-ago third quarter. Asbury said in mid-October it expected earnings in line with analysts' average estimate of 50 cents per share.

Results included a loss from discontinued operations of $922,000, or 3 cents per share, in the 2003 third quarter.

Revenue rose to $1.29 billion from $1.20 billion previously.

New vehicle sales rose 9.4 percent, or 4.1 percent for dealerships open at least a year, reflecting significantly higher selling prices. Sales growth was stronger in the collision and repair business and in finance and insurance.

Asbury said that it expects earnings from continuing operations for 2003 of around $1.55 per share, based on expectations of a difficult sales environment, with new and used vehicle sales on a same-store basis down in the mid- to upper-single digit range.

That compares with analysts' estimates on average of $1.56 per share, according to Reuters Research.