AutoNation Inc. on Wednesday reported a 5% rise in net income as a result of strengthening consumer demand for new cars and trucks.
The company, which operates the largest chain of car dealerships in the U.S., said net income increased to $73 million, or 55 cents a share, from $69.4 million, or 46 cents, a year earlier. Revenue increased 10% to $3.66 billion.
AutoNation and other auto retailers have been helped by a clear acceleration in the pace of auto sales this year. In the first quarter, auto makers sold 3.5 million cars and light trucks in the U.S., up 13% from the year-ago period.
“The renaissance in auto retail is well under way,” Chairman and Chief Executive Michael J. Jackson said in a statement. “The American consumer has more choices than ever with improved fuel efficiency, better technology, and accelerated product offerings.”