October 29, 2019 / 11:11 AM / 24 days ago

AutoNation profit drops due to severance-related costs

Oct 29 (Reuters) - AutoNation Inc reported an 11% fall in quarterly profit on Tuesday, partly due to severance costs related to former chief executive officer Carl Liebert and as the largest U.S. auto retail chain sold fewer new vehicles despite lower interest rates.

Net income from continuing operations fell to $100 million in the third quarter ended Sept. 30, from $112.3 million a year earlier.

The company's earnings per share from continuing operations declined to $1.11 from $1.24, beating the average analyst estimate of $1.05, according to IBES data from Refinitiv.

AutoNation in August warned it expected severance and other expenses paid to Liebert to "adversely impact" third-quarter earnings by an estimated 11 cents to 12 cents.

Total revenue rose 2.1% to $5.46 billion. (Reporting by Rachit Vats in Bengaluru; Editing by Subhranshu Sahu)

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