Dealer profits remained ahead of last year’s pace through October, as all sectors showed an increase in net income and total sales compared to 2003, according to consulting firm Spader Business Management.
Dealerships with less than $5 million in annual sales showed a 13.8% increase in net income to $193,346 for the first 10 months of 2004 compared to $169,958 last year. Sales of new RVs also rose 11.5% to $2.2 million.
According to Spader, new-unit inventories increased for midsize and large dealerships, up 7.8% to $1.9 million and 14.8% to $4.2 million respectively.
Other performance highlights include:
* Large dealers, those with annual sales of more than $10 million, were up 5.6% in net sales to $17.8 million through October compared with $16.8 million last year. New-unit sales rose 7% to $11.2 million while net income was just over $1 million for the first 10 months of 2004 compared to $999,178 last year.
* Midsize dealers, those with annual revenue of $5 million to $10 million, had a 2.8% increase in net income through October at $415,631 compared with $404,306 last year. Net sales grew 6.6% to $7.5 million versus just under $7 million in 2003. New-RV-unit sales were up 9.2% to $4.8 million compared to $4.4 million last year.
* Dealerships with less than $5 million in annual revenues decreased new-unit inventories by 4.5% through October to $954,885 compared to 2003. Net sales were up 10.1% to $3.7 million from $3.4 million in 2003.