AutoNation Reports Flat Net Income

AutoNation Inc., the largest new-car retailer in the country, reported flat fourth-quarter earnings as increased selling costs ate into profit.

The Fort Lauderdale, Fla., company, which has 318 new-car franchises including 42 in Southern California, said net income was $79 million, or 28 cents a share, compared with $79.4 million, or 26 cents, a year earlier. Sales rose 1.7% to $4.6 billion. Earnings per share were boosted by the company’s repurchase of 6 million of its shares.

AutoNation’s Southern California dealerships contributed about $3 billion in annual sales.

AutoNation reported full-year net income of $479.2 million, or $1.67 a share, up 26% from $381.6 million, or $1.19. Sales of $19.4 billion were down slightly from $19.5 billion.

Shares of AutoNation rose 60 cents to $16.89 on the NYSE.

*

John O’Dell