Wednesday, May 20, 2009
Used car margin improvements boost Inchcape
International automotive distributor and dealer Inchcape has recorded 'strong' profitability in the first quarter of 2009 partly due to the better than expected performance of the UK market.
In a trading update for the first three months of the year delivered at the company's AGM, Inchcape said that while car markets around the world remained 'challenging', trading was ahead of internal expectations.
Nevertheless, total sales were 13 per cent down compared to the first quarter of last year and like-for-like sales were down 22 per cent. Unaudited pre-tax profit for the quarter was £20 million, down 69 per cent on what was a record first quarter last year but slightly better than previously expected.
But, the UK market, along with Singapore, performed better than predicted. In the UK, Inchcape said the benefit came from an improvement in used car margins. Aftersales business was also resilient.
Looking forward the statement concluded: "Although markets remain very difficult, the group delivered solid profitability in the first quarter of 2009, as the execution of our five operational priorities (growing market share and aftersales, while reducing costs, working capital and capital expenditure) continued to gain traction. Whilst this is an encouraging start, our expectations for the full year remain unchanged."
DATED: 20.05.09
FEED: AW
