Tag Archive | "revenue"

GWC Warranty Names New Chief Revenue Officer


WILKES-BARRE, Penn. – GWC Warranty, the best-in-class provider of used vehicle service contracts sold through automotive dealers, has appointed Brian Stach as the company’s new Chief Revenue Officer.
In his role, Stach will oversee all of GWC Warranty’s field sales operations, including a nationwide team of Area Vice Presidents, Dealer Consultants and Trainers.
 
“Brian is a proven leader with a long track record of fostering highly engaged, successful sales teams focused on flawless execution and best-in-class customer service. Because of this, we believe that Brian is an ideal fit to lead GWC Warranty’s talented, industry-leading sales team,” said GWC Warranty CEO & President Rob Glander.
 
Stach, a St. Mary’s University of Minnesota graduate, joins GWC Warranty following more than 15 years of successful sales management experience. Throughout his career he has spearheaded results-driven initiatives at numerous organizations such as CareerBuilder, Yahoo! and DialogTech. Most recently, he served as the Vice President of Sales for Internet Brands.

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GWC Warranty Names New Chief Revenue Officer


WILKES-BARRE, Penn. – GWC Warranty, the best-in-class provider of used vehicle service contracts sold through automotive dealers, has appointed Brian Stach as the company’s new Chief Revenue Officer.
In his role, Stach will oversee all of GWC Warranty’s field sales operations, including a nationwide team of Area Vice Presidents, Dealer Consultants and Trainers.
 
“Brian is a proven leader with a long track record of fostering highly engaged, successful sales teams focused on flawless execution and best-in-class customer service. Because of this, we believe that Brian is an ideal fit to lead GWC Warranty’s talented, industry-leading sales team,” said GWC Warranty CEO & President Rob Glander.
 
Stach, a St. Mary’s University of Minnesota graduate, joins GWC Warranty following more than 15 years of successful sales management experience. Throughout his career he has spearheaded results-driven initiatives at numerous organizations such as CareerBuilder, Yahoo! and DialogTech. Most recently, he served as the Vice President of Sales for Internet Brands.

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Women and Minority-Owned Small Businesses Still Struggle, Report Shows


They’ve made inroads, but revenues still show inequalities, reports TIME Magazine.

Women and minorities may own a growing number of small businesses, but the news isn’t so rosy on the revenue side, the Pew Research Center reported on Tuesday.

The report, which is based on preliminary results from the Census Bureau’s Survey of Business Owners, shows that of the more than $14 trillion in revenues from sales reported in 2012, only $1.6 trillion, or 11.3%, went to female-owned businesses. Businesses owned by men took in 79% of sales.

As of 2012, the report shows men still owned more than half of the United States’ 27.6 million firms. Women, by comparison, only owned about 36% of businesses, up from 29% in 2007. But even in sectors with with many female business leaders, women haven’t always been as successful as their numbers suggest. In the heavily female educational market, women took in only about a quarter of revenues.

The report shows similar inequality exists for businesses owned by members of minority groups: 29% of all small businesses were owned by blacks or Asians in 2012 (roughly 12% were owned by Hispanics, who Pew notes can be of any race), but just over 10% of total sales revenue went to minority-owned businesses. Lower revenues of companies owned by women and minorities means that there’s fewer dollars left to pay employees, which can keep those businesses from advancing and growing.

The Census Bureau will release the full Survey of Business Owners in December.

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Three Dealer Groups Report Solid Q2 Profit Gains


AutoNation, Asbury and Sonic report solid second-quarter gains behind rising consumer demand and better credit conditions.

The 15 percent increase in new-vehicle sales in the second quarter, as reported by CNW Research, delivered solid profit gains for three of the nation’s largest dealer groups. One executive attributed the rise to increasing demand for new vehicles, an aging fleet and improving credit conditions.

Mike Jackson, chairman and CEO of AutoNation, said the pickup in new model introductions also helped drive consumers into showrooms. He said these factors combined should help new-vehicle sales reach the mid-14 million-unit mark this year, reported F&I and Showroom magazine.

“We’re finding that the credit environment is very strong with low interest rates and ample credit availability,” Jackson said during the company’s July 19 investor call. “AutoNation is well positioned to capitalize on the recovery with an optimal brand and market mix and a disciplined cost structure.”

Second quarter net income rose 9.3 percent for the nation’s largest dealer group, while revenue for the quarter totaled $3.9 billion, up 17 percent from the year-ago period. New-vehicle sales were up 29 percent, while used-vehicle revenue rose 8 percent.

Gross profit per new vehicle, however, fell 18 percent to $2,172, while gross profit per used vehicle declined by 10 percent to $1,624. AutoNation’s F&I revenue increased 28.1 percent from the year-ago period, with F&I gross profit per retail unit rising 3.7 percent from a year ago to $1,282.

Asbury Automotive Group Inc. reported its second-quarter performance today, and revealed a 49 percent increase in net income for the quarter. Earnings for the Duluth, Ga.-based auto group reached $21.1 million, up from $14.2 million in the year-ago period.

Revenue for the dealer group increased 11 percent from a year ago to $1.19 billion, while new-car revenue increased 16 percent to $663.4 million. Asbury’s Used-car revenue for the quarter increased 7.1 percent to $339.1 million.

F&I revenues for the dealer group increased 21 percent to $42.8 million. F&I profit per new-vehicle sold increased 8 percent to $1,200. Combined with used and parts and sales services, the three segments account for 46 percent of Asbury’s revenue, but represented 79 percent of the company’s gross profit.

“Consistent with what we are seeing across our industry, retail margins continue to be under pressure as Japanese-branded inventory levels and sales volumes recover,” stated Asbury’s Executive Vice President and COO Michael S. Kearney in a release. “However, we again demonstrated the diversity of our business by delivering growth in both F&I and parts-and-service gross profit.”

Sonic reported its second-quarter performance on Monday, revealing a 32 percent increase net income. Revenue for the Charlotte, N.C.-based group rose 12.3 percent from a year ago to $2.19 billion. The company sold 34,396 new vehicles in the second quarter vs. 28,125 units a year ago, with the dealer group earning $28.2 million from the quarter.

Sonic’s retail sales for new vehicles increased 21 percent to $1.18 billion, while used-vehicle sales grew 4 percent to $550 million. The company sold a total of 36,026 new vehicles during the quarter, a 19 percent increase from a year ago. Used vehicle unit sales rose 2.7 percent to 27,528.

Gross profit per unit came in at $2,039, down from the second quarter of the previous year’s $2,347. The dealer group also reported that F&I revenue was up 18 percent.

Other dealer groups — Lithia Motors, Group 1 Automotive and Penske — are scheduled to announce second quarter earnings throughout the remainder of the month.

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GMAC Reports 3Q Loss of $767 Million


GMAC Financial Services reported a third-quarter 2009 net loss of $767 million, an improvement from the net loss of $2.5 billion in the year-ago period.

While overall third-quarter results were adversely affected by losses in GMAC’s mortgage operations, the company made improvements in its automotive finance division and continues to focus its efforts in that segment.

“Our focus is on growing operations where we can leverage our strengths,” said GMAC CEO Alvaro G. de Molina. “We have made major strides in bringing the Chrysler business on line, we launched a competitive dealer program that leverages our full suite of auto products, and Ally Bank continues to attract customers.”

GMAC’s global automotive finance business reported third quarter 2009 pre-tax income from continuing operations of $395 million, compared to a pre-tax loss from continuing operations of $379 million year-ago period. Continuing operations in the segment were driven by the continued normalization of origination volumes, credit improvement and used vehicle prices.

Total consumer financing originations were $7.7 billion in the third quarter, which included $6.8 billion of new originations, approximately $800 million of used originations and approximately $100 million of new leases. The captive finance company said originations were lower than the $13.3 billion reported in the third quarter 2008, because of a decrease in U.S. vehicle sales and lower leasing levels.

However, origination levels continued to trend upward as they increased 26 percent from $6.1 billion in the second quarter 2009. The increase from last quarter includes improved pricing competitiveness, an increase in Chrysler originations and the effect of the Cash for Clunkers program, according to GMAC.

Credit losses increased in the third quarter to 3.29 percent of managed retail assets, versus 1.56 percent in the year-ago period. The increase is primarily due to a standardization of GMAC’s charge-off policy to conform to regulatory requirements, the effect of a smaller asset base, and the underlying performance of certain subprime portfolios.

Delinquencies, which are contracts more than 30-days past due, also increased to 3.76 percent in the third quarter, compared to 2.77 percent in the third quarter 2008 and 3.48 percent in the second quarter 2009. Delinquency trends have been negatively affected by higher unemployment and a smaller asset portfolio in North America and Europe.

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Ford Credit Earns $427 Million in 3Q


DEARBORN, Mich. — Ford Motor Credit reported net income of $427 million in the third quarter, an increase of $332 million from earnings of $95 million a year earlier. On a pre-tax basis, Ford Credit earned $677 million in the third quarter, compared with $161 million in the previous year. For the first nine months of 2009, the company earned $1.3 billion on a pre-tax basis.

The increase in pre-tax earnings primarily reflected lower residual losses due to higher auction values and lower provisions for credit losses, offset partially by lower volume.

Ford Credit earned net income of $827 million in the first nine months of the year, an increase from a net loss of $1.3 billion in 2008.

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