Sonic Auto 1Q Profit Slumps, Tops Estimates

CHARLOTTE, N.C. (AP) — Automotive retailer Sonic Automotive Inc. said profit tumbled 87 percent in the first quarter as new and used car sales fell and the company took an expense for debt restructuring. But the results still beat analysts' expectations.

The nation's third-largest automotive retailer earned $1.7 million, or 4 cents a share, for the three months ended March 31 compared with $12.6 million, or 31 cents a share, a year ago.

The results included $3 million in loss of operations and the sale of discontinued franchises and $2.3 million in loss from discontinued operations. They also included a $2 million expense for debt restructuring, which reduced results by 3 cents per share.

The company said profit from continuing operations was $5.4 million, or 13 cents per share. Excluding the charge, profit from continuing operations was 16 cents a share, the company said.

Revenue fell to $1.2 billion from $1.6 billion a year ago.

Analysts polled by Thomson Reuters expected a loss of 4 cents a share on higher revenue of $1.3 billion.