Medford's Lithia Motors' profits up

Portland Business Journal:

Lithia Motors Inc. on Wednesday reported a third-quarter profit of $9.7 million, or 37 cents per share, on $582.6 million in revenue. In the same period last year it had $508 million in sales and a profit of $5.7 million, or 27 cents per share.

It exceeded its own guidance by 8 cents per share and easily beat analysts estimates, which averaged 28 cents per share.

The Medford-based auto retailer (NYSE: LAD) will pay a five cent dividend to shareholders of record as of Nov. 12, following on a similar payment in the second quarter. It paid an annualized dividend of 20 cents per share in 2008 and no dividend in 2009.

The third-quarter earnings were up 15 percent from a year ago.

Lithia attributed its growth to higher prices for new cars and a 20 percent increase in used car sales. Used vehicle sales were spurred by Lithia’s campaign to sell high mileage vehicles it previously sold to wholesalers. Instead, it now sells those vehicles in a bid to develop new customer relationships.

The company sells 1.05 used cars for every one new car.

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