DETROIT -- Auto dealer Group 1 Automotive Inc. on Wednesday reported a first-quarter loss after it took a charge for an accounting change.
Houston-based Group 1 said net loss for the quarter was $1.6 million, or 7 cents a share, compared with a profit of $10.49 million, or 45 cents a share, a year earlier.
The results include an after-tax charge of $16 million, or 67 cents per share.
Excluding the effect of the accounting change, Group 1 said it would have earned $14.4 million, or 60 cents per share.
Wall Street analysts on average expected 67 cents a share, according to Reuters Estimates.
Revenues during the quarter increased 22 percent to $1.39 billion from $1.14 billion a year ago, largely due to acquisitions made in 2004. Same-store sales were up 0.1 percent as higher parts and service revenue was offset by lower revenues from vehicle sales and decreased finance business.
For all of 2005, Group 1 said that it expects earnings in the range of $2.95 to $3.05 per share, which excludes the effect of the accounting change.
"We expect overall sales volumes to remain stable, but the intense competition among all brands will continue to put pressure on our margins," said Earl Hesterberg, Group 1's new president and chief executive officer, in a statement.
Group 1 will focus on managing inventories of unsold vehicles and controlling costs through the year, he added.