Sonic Automotive Swings To 3Q Profit

CHARLOTTE, N.C. (AP) — Automotive retailer Sonic Automotive Inc. said Tuesday it posted a $15.6 million third-quarter profit, as lower costs offset a drop in sales.

Sonic's profit amounted to 17 cents per share and compared with a loss of $27 million, or 67 cents per share, for the same quarter last year.

The company's profit from continuing operations totaled $18.5 million, or 22 cents per share, up from a loss of $15.1 million, or 38 cents per share.

The recent quarter's results included a gain of 1 cent per share related to the repurchase of convertible notes, while the prior year quarter included impairment charges, lease exit accruals and hurricane damage that reduced its profit by 53 cents per share.

Sales dropped 5.9 percent to $1.52 billion from $1.62 billion.

Analysts polled by Thomson Reuters expected a profit of 24 cents per share on $1.48 billion in sales.

New vehicle sales fell 12 percent to $825.4 million, while used vehicle sales rose 19 percent to $365.5 million. Revenue from parts, service and collision repair fell less than a percent to $255.4 million.

In morning trading, shares of Sonic Automotive slid $1.37, or 11 percent, to $11.13.