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Eagers Automotive (ASX:APE) hits record profit amid car sale boom
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  • Eagers Automotive (APE) has racked up a record $98 million in unaudited underlying operating profit before tax during the March quarter
  • The surge in demand for new and used cars is being credited for the increase, as APE owns over 250 different car dealerships
  • The ASX-200 business is expecting its statutory net profit before tax for the three-month period is expected to total $105 million
  • The company's $108 million sale of its Daimler Truck Operations and Milperra property to Velocity Vehicle Group isn't included in APE's quarterly financials
  • But the car retailer advises the sale to the U.S.-based business in still on track to be completed in the first half of 2021
  • Shares in Eagers Automotive have spiked 2.04 per cent to trade at $15.49 per share

Eagers Automotive (APE) has racked up a record $98 million in unaudited underlying operating profit before tax during the March quarter.

The surge in demand for new and used cars is being credited for the increase, as Eagers owns over 250 different car dealerships across Australia and New Zealand.

"Unusually strong market dynamics, characterised by demand outstripping supply, combined with the ongoing benefits of our material cost out program completed over the last 12 months, have underpinned this result," the company said.

The ASX-200 business also revealed in today's update that it is expecting its statutory net profit before tax for the three month period is expected to total $105 million.

Additionally, Eagers states that its $108 million sale of its Daimler Truck Operations and Milperra property to Velocity Vehicle Group isn't included in APE's quarterly financials.

However, the car retailer advises the sale to the U.S.-based business in still on track to be completed in the first half of 2021.

APE believes the sale will deliver an estimated net gain before tax of $32 million to $36 million — subject to adjustments on completion.

The ASX-200 lister will release the full net gain in its completed financial result while its full audited results will be released at the end of the financial year.

Shares in Eagers Automotive have spiked 2.04 per cent to trade at $15.49 per share at the close of market on Monday.

APE by the numbers
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