Autonation CEO Comments on 35% EPS and 17% Revenue Increase (AN)

AutoNation's AN CEO, Mike Jackson, appeared on CNBC today to discuss his company's earnings announcement today. The CEO highlighted the 35% increase in earnings per share for the company and its 17% increase in revenues. The CEO said that a "broad-based automotive recovery is underway." The CEO said that he seeing a shift from mid-size automobiles to compact cars. He said that manufacturers and suppliers are having an easy time meeting the needs of AutoNation. Finally, the CEO said that the "freak out" level in terms of cost of gasoline will not occur at $4/gallon. Instead, that level has shifted to $5/gallon. AutoNation reported 2011 first quarter net income from continuing operations of $70 million or $0.46 per share, compared to net income from continuing operations of $59 million or $0.34 per share for the same period in the prior year, a 35% improvement on a per-share basis. Commenting on the impact of the Japan earthquake on the full-year industry outlook, Mr. Jackson said, “While the underlying recovery in consumer demand for autos remains on track in the United States, due to Japanese supply constraints throughout the remainder of 2011, we are revising our planning assumption for 2011 full-year U.S. industry new vehicle sales downward from 12.8 million units to mid-12 million units. Based on current information, we see significant reductions in vehicle shipments from Japanese manufacturers through year-end, with the resumption of normal shipment levels in early 2012.” Mr. Jackson added, “Our diversified business model is resilient and adaptable. We are confident we can manage through the challenges presented by Japanese product constraints. We also continue to be optimistic about the long-term recovery for the U.S. auto market.”