(Adds company's earnings forecast, initiation of quarterly dividend.)
DETROIT, July 23 (Reuters) - Auto dealer Lithia Motors Inc. said on Wednesday second-quarter earnings rose on strong same-store sales of new vehicles and improved margins.
The company said it earned $8.5 million, or 46 cents a share, compared with $7.9 million, or 43 cents a share, in the same period a year ago.
Revenues rose 14 percent to $667.5 million from $584.3 million.
Lithia, based in Medford, Oregon, increased its full-year earnings outlook to $1.65 to $1.75 a share from $1.50 to $1.60 a share. It had earned $1.84 a share in 2002.
"We are becoming more optimistic about the third quarter of the year, due to recent trends in our business," said Chief Financial Officer Jeffrey DeBoer.
Lithia also said it will start paying a quarterly dividend, with 7 cents a share to be paid Aug. 22 to shareholders of record on Aug. 8.