Group 1 Auto Sees More Than $1 Million Charge for Hail Damage

Automotive retailer Group 1 Auto (NYSE: GPI  ) said yesterday it is assessing damage at four of its New Orleans dealerships caused by a Feb. 24 hail storm. The National Weather Service said hail as large as 2.5 inches pounded the city and suburbs as a northward moving warm front rose and met with very cold temperatures high in the air.

Group 1 said after a preliminary assessment it appeared some of its facilities sustained damage, as did most of the new and used vehicle inventory located at the four stores, which represents 2.5% of its total new vehicle unit sales in 2012. The four dealerships are composed of five franchises, including Ford, Buick, General Motors, Toyota, and Hyundai. 

Because the company is insured with large deductibles, it currently estimates it will incur pre-tax charges related to them in the range of $1.1 million to $1.4 million, or approximately $0.03 per diluted common share, in the first quarter. Group 1 expects sales to be adversely affected until inventories are fully replenished by late May.

Group 1 owns and operates 142 automotive dealerships, 182 franchises, and 36 collision centers in the United States, the United Kingdom, and Brazil that offer 35 brands of automobiles. 

link


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2287582, ~/Articles/ArticleHandler.aspx, 8/20/2014 4:36:10 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement