AP Eagers estimates record 1H profit

AP Eagers estimates record 1H profit

Car group AP Eagers (ASX:APE) estimates a record June-half profit before tax of $27.9 million, in what it hails as a validation of its acquisition strategy.

Unaudited results show that pre-tax profit grew 22% year-on-year, on the back of earnings per share accretive results from recent acquisitions.

These include Adtrans, which AP Eagers acquired last year; Elben Motors, purchased through the Adtrans business in March for $7 million; and Caloundra City Autos, acquired for around $10.5 million in early 2010.

Like-for-like earnings also increased, and asset sales contributed around $1.7 million to total pre-tax profit.

But earnings were held back by vehicle shortages arising from the impact of the Japanese earthquake and tsunami on supply-chain inventories, and AP Eagers CEO Martin Ward commented on what had been “a tough retail environment.”

AP Eagers predicts that a second-half new vehicle supply recovery will lift the company's momentum in the second half.

APE shares fell 7.62% in Tuesday's trading to $10.300.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Automotivenatural disasterAP EagersGuidanceASX:APEMartin Ward

Show Comments