Inchcape profits down 69 percent but better than expected

Posted on May 14th, 2009 by In51der in Car Dealers, News

Car dealer group Inchcape posted a 69 percent drop in first-quarter profit to 20 million pounds ($30.3 million), but said that was better than it had feared due to an improved performance in Singapore and the UK.

The British-based firm, which trades in 26 countries, said on Thursday like-for-like sales fell 22 percent and that Hong Kong, Europe, Russia and emerging markets remained “very weak”.
“Whilst this is an encouraging start, our expectations for the full year remain unchanged on a constant currency (basis),” it said in a statement.

Inchcape shares plunged over 90 percent last year amid an unprecedented slump in car sales that led it to axe 2,000 jobs, scrap its dividend, reduce stocks and cut capital spending.

The shares have bounced from a low of 5.82 pence this year, after the firm raised 249 million pounds in a deeply discounted rights issue to pay down debt.

Source: Reuters


Get a CAP Used Car Valuation for just £3.50 - What The Professionals Use

The Motor Trade Insider Guide To Buying New Cars

  • VW report 80 percent drop in profits for 2009
    Europe’s biggest car maker VW has reported an 80% fall in profits for 2009 partly due to a fall in [...]...
  • Inchcape upbeat despite ‘challenging’ market
    International automotive group Inchcape, which is one of the UK’s largest dealer groups, says that its financial performance for 2009/10 [...]...
  • Inchcape results ‘solid’ in a ‘challenging’ market
    A ‘solid’ set of financial results for the first six months of 2009 has been delivered by UK-based international automotive [...]...
  • VW in very strong position as profits better than expected
    Volkswagen’s cash pile has continued to grow since December and second-quarter operating profit easily beat expectations, Europe’s largest carmaker said [...]...
  • Pendragon and Inchcape make triple-digit share price gains
    Automotive News Europe reports that UK car retail groups Pendragon PLC and Inchcape PLC each gave shareholders triple-digit returns for [...]...
  • Inchcape seeks to reduce debt
    International car retailer Inchcape is to ask its shareholders for £232 million in an effort to shore up its balance [...]...
  • One Comment on “Inchcape profits down 69 percent but better than expected”

    1. admin

      International automotive distributor and dealer Inchcape has recorded ‘strong’ profitability in the first quarter of 2009 partly due to the better than expected performance of the UK market.

      In a trading update for the first three months of the year delivered at the company’s AGM, Inchcape said that while car markets around the world remained ‘challenging’, trading was ahead of internal expectations.

      Nevertheless, total sales were 13 per cent down compared to the first quarter of last year and like-for-like sales were down 22 per cent. Unaudited pre-tax profit for the quarter was £20 million, down 69 per cent on what was a record first quarter last year but slightly better than previously expected.

      But, the UK market, along with Singapore, performed better than predicted. In the UK, Inchcape said the benefit came from an improvement in used car margins. Aftersales business was also resilient.

      Looking forward the statement concluded: “Although markets remain very difficult, the group delivered solid profitability in the first quarter of 2009, as the execution of our five operational priorities (growing market share and aftersales, while reducing costs, working capital and capital expenditure) continued to gain traction. Whilst this is an encouraging start, our expectations for the full year remain unchanged.” (Autowired)

    Automotive Industry News

    About MTI

    Motor Trade Insider
    Our aims:
    Build a bridge between consumers and the trade.

    Create Interesting and informative content.

    Break down barriers and create better understanding.

    Expose bad practices and rip-offs.

    Promote outstanding products and services.

    Motor Trade Insider is written by people working actively in the motor trade for people on the inside and people on the outside.

    Motor Trade Insider New Car Buying, Used Car Buying, Used Car Prices, Used Car Values UK. Car buying guide. Whether you’re buying a new car or interested in used cars or car valuation or just general information and advice on the motor trade and UK Automotive Industry.

    Valid CSS!

    Valid XHTML 1.0 Transitional

    [Valid RSS]

    Bargain of the Week

    Bargain of the Week – Land Rover Discovery

    Bargain of the Week – Land Rover Discovery

    With all the boxes ticked it does make you wonder how the British government think they can keep raising the cost of car ownership to ...

    Bargain of the Week – Ferrari 355

    Its V8 engine became the first road-going Ferrari to have bypass valves built into the exhaust system letting pretty much all of its thunder explode ...

    Bargain of the Week – 2003 Range Rover 3.0 Td6 HSE

    With the recent facelifted Range Rover and Sport doing wonders for sales, forking out for a 10-plate can set you back over 50 big ones ...

    Scrappage

    Order takers stand aside – it’s time to get back to selling cars

    Order takers stand aside – it’s time to get back to selling cars

    A sales manager we spoke to who represents a franchise for a German manufacturer said that normally in the build up to a plate change ...

    Car Makers Premier League – July 2010

    with the headline figure for the month being a 13.2% decrease to 136,446 units. In July 2009 the market had showed its first increase for ...

    The scrappage scheme has ended, get over it

    The continuous changes which the car trade is undergoing means that until staff get the message that customers demand (and deserve) great service and will ...