Group 1 Q4 net rises on tax break

Group 1 Automotive Inc.'s fourth-quarter net income nearly quadrupled on a one-time gain from U.S. tax changes and increasing gross profits in all of the dealership group's regions.Net income at the nation's third-largest auto retailer rose to $110.5 million from $30.8 million in the year-earlier period, the company said Thursday. Net was boosted by a $73 million gain on lower U.S. corporate tax rates, offset in part by $6.5 million in after-tax noncash asset impairment charges. Adjusted net income advanced 23 percent to $44.3 million.Shares in Group 1 rose 3 percent to close at $75.04 despite the Dow Jones industrial average falling more than 1,000 points on Thursday.In a statement, CEO Earl Hesterberg noted that the gains came "despite the headwinds we encountered in the first half of 2017 in our oil-impacted markets and the significant disruptions across our Southeast Texas markets from Hurricane Harvey."He added, "Our team in the U.K. continues to outperform the market, delivering impressive growth even as the overall market slows."Total revenue rose 9.2 percent to $2.92 billion in the quarter.Some highlights:Sales:New-vehicle sales rose 6.4 percent to 44,713 across the group's dealerships in the U.S., U.K. and Brazil. Total used-vehicle sales rose 2.1 percent to 45,588 units.Same-store sales: New-vehicle sales in the U.S. rose 4.4 percent to 33,157 units, compared with a 1.8 percent drop in light-vehicle sales across the industry in the fourth quarter. Same-store sales of new vehicles across all Group 1 stores rose 2.5 percent to 42,692 units.Records: Finance and insurance gross profit per vehicle retailed in the U.S. rose 3.4 percent to a record $1,700. For all of 2017, total revenue grew 2.2 percent to a record $11.1 billion.International operations: At Group 1's U.K. operations, gross profit climbed 36 percent to $60.4 million on a 31 percent rise in revenue, to $507.8 million. At its Brazilian operations, gross profit grew 8.3 percent to $14.6 million, as revenue increased 8.8 percent to $125.4 million.Group 1 Automotive, of Houston, ranks No. 3 on Automotive News' list of the top 150 dealership groups based in the U.S., with retail sales of 172,053 new vehicles in 2016.

Group 1 Q4 net rises on tax break

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