Boston, MA 05/12/2014 (wallstreetpr) – There is little for Group 1 Automotive, Inc. (NYSE:GPI) to celebrate about Brazil. Following tepid performance in the South American country in the latest quarter, the company is concerned about performance there and believes that auto sales in the country would be less than flat in 2014.
Brazil’s economy has been an issue of concern for many industry players. In fact, many businesses are concerned about the market. From financial services to real estate to auto industries, Brazil seems to be generating more heat than light.
Warning ahead of time
Without clear signs of positive developments in the market, Group 1 Automotive, Inc. (NYSE:GPI) sought to prepare investors over the potential impact from Brazil operations. However, the company believes that despite flat or sales decline in Brazil in 2014, sales in the U.S. and U.K where performance continues to beat logic should offset any impact resulting from a soft Brazil market.
The latest quarter saw the auto-dealer turn positive results supported by higher sales in the U.S. and U.K, where both new and old vehicles registered sales improvement.
With higher sales projections in the U.S. and U.K. this year Group 1 Automotive, Inc. (NYSE:GPI) expects to make the most from the favorable market condition even though the management said that it would be difficult to recoup the business lost in the first two months of the year during which weather reduced sales and increased costs.
U.S. sales in 2014
Group 1 Automotive, Inc. (NYSE:GPI) expects the U.S. sales to total 16.3 million in 2014 and going by its April performance, the company noted that sales are consistent with the performance registered in March.
The company noted that demand for used and new vehicles in the U.S. remains strong and that a favorable business environment should support strong sales in both segments – new and old vehicles. The company saw its new sales in the U.S. up 4 percent in 1Q and used vehicle sales up 8 percent in the quarter. As a result, total sales in the U.S. in the latest quarter were up 7 percent to $1.8 billion over the same period a year earlier.
