Mail Tribune Business - Lithia earnings exceed forecast

Document text

Lithia earnings exceed forecast Lithia Motors Inc. has beaten Wall Street's earnings expectations for the 10th straight quarter, the company said Wednesday. The Medford-based auto dealership company's revenues for the first quarter of 1999 were $224.1 million -- a 53-percent increase over the same quarter a year ago. Profits were up 99 percent to just over $3 million dollars from $1.52 million in the first quarter of 1998. The driving force behind the publicly held chain's sales and profit growth has been the addition of eight new locations in the past year. Company spokesman Jeff DeBoer said sales in Southern Oregon represent less than 25 percent of Lithia's revenue. Sales at the eight stores bought within the last year were up 14.6 percent from the first quarter of 1998 and pre-tax profits rose 110.3 percent. "These results attest to Lithia's ability to improve the operations of newly acquired stores during the first two years of operation," said Dick Heimann, Lithia's president and chief operating officer. Lithia runs 28 stores in four Western states -- 13 of which it has owned for two years or less. A deal to buy seven dealerships in Colorado and Nevada is expected to close toward the end of the second quarter, giving Lithia 35 dealerships in five states. Lithia's profits break down to 29 cents per share -- four cents higher than projections from Wall Street analysts and an eight-cent increase over the first quarter of 1998. Today's Business Index Mail Tribune Copyright � The Mail Tribune 1999, Medford, Oregon USA