U.S. auto retailer Lithia Motors’ profit nearly doubled with record car prices

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October 20 (Reuters)American automotive retailer Lithia Motors Inc LAD.N on Wednesday announced a 94% increase in quarterly profits, aided by tight vehicle inventories that pushed prices to record highs.

A global semiconductor shortage has forced dealers and automakers to operate with much lower inventory than usual.

The company’s net income reached $ 307.9 million, or $ 10.11 per share, for the third quarter ended Sept. 30, from $ 158.8 million, or $ 6.86 per share, a year earlier.

The average retail price of new vehicles hit record highs in the quarter, according to automotive consultant JD power, boosting profits for auto retailers as demand for personal transportation remains high.

Lithia said the average gross margin per new vehicle jumped 78.7% to $ 5,221 and rose 3.9% to $ 3,046 for used vehicles.

Quarterly revenues reached $ 6.17 billion from $ 3.62 billion a year earlier.

(Report by Shivansh Tiwary in Bangalore, edited by Shailesh Kuber)

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