Sonic Automotive Inc (NYSE:SAH) drops on “account” of weakness- PAG

Northern, WI 03/19/2013 (avauncer) - The third-largest public auto-dealership in the U.S, Sonic Automotive Inc (NYSE:SAH) (Current: $22.93, Dwn: 2.84%), dipped the highest in three weeks after it told the regulators that the delay in filing the annual report had been due to accounting slip-ups at its dealerships. The Charlotte, North Carolina-based company said that the final results will not undergo any changes from the ones that had been reported on Feb 20. It said that the company’s adjusted profit had risen to $1.71 per share by 20 percent. Last year has seen an increased demand of 13 percent for new light vehicles and auto dealerships in the U.S had benefited from it. This was the industry’s highest annual-gain since 1984.

Accepting the slip-up

In a filing, Sonic said that the company had determined that they had faltered in being able to effectively control the accounting process that is followed by its dealerships. There is always a 15-day extension period and the company will be filing its annual report within this time-frame. By the number of new vehicles that are sold, AUTONATION INC. DL-,01(FRA:RWI) and Penske Automotive Group, Inc (NYSE:PAG) (Current: $32.64, Dwn: 1.95%) are the United States’ largest auto-dealership groups.

The company’s dealerships offer a range of services. They sell new and used cars as well as light trucks. They are involved in vehicle maintenance and also sell replacement parts. Collision repair and paint services, insurance, financing and service contract extensions are also handled for its customers. Sonic Automotive Inc (NYSE:SAH) sells over 30 domestic and foreign brands of new vehicles.