CarMax improves earnings on higher sales
- September 22, 2009
Used-car retailer CarMax boosted its quarterly profit on higher used-car sales and adjustments in its finance division.
The Goochland County-based company reported a profit of $103 million for the second quarter, compared with a $14 million profit during the same period the year before. Its net sales increased 13 percent to $2.1 billion, compared with $1.8 billion during the same period last year.
“We are pleased to report healthy increases in both used and wholesale vehicle unit sales,” Tom Folliard, CarMax president and CEO, said in a statement. “In part, the sales growth was the result of easier year-over-year comparisons; however, it also reflected improving customer traffic trends and an improvement in sales execution.”
Folliard said the government’s “cash-for-clunkers” program helped boost sales in July and August. CarMax’s second quarter ended Aug. 31.
CarMax Auto Finance reported income of $72.1 million in the second quarter, compared with a loss of $7.1 million last year. In both years, the results were affected by adjustments from loans that originated in previous quarters.
Still, excluding the loan adjustments, division income increased to $36 million from $21 million during the quarter.