Toronto, Ontario — In this weekly Tuesday Ticker, AutoCanada reports decreased Q1 2024 revenues, compared to Q1 2023, while Magna’s financial results touch on the company’s relationship with EV maker Fisker.
A ‘challenging’ quarter
Edmonton, Alta.-based dealership group AutoCanada reported its Q1 2024 results last week, commenting that market conditions culminated in “challenging operating dynamics during the first quarter.”
AutoCanada Executive Chair Paul Antony commented that “the trend of replenishing new light vehicle inventory, combined with consumer preference to buy affordable vehicles and minimize borrowing costs, resulted in continued normalization of total gross profit per new retail unit.”
“This, combined with extremely cold weather impacting foot traffic in many of our Western Canadian stores, along with a shortage of quality, well-priced used vehicles available to procure for our used division, culminated in challenging operating dynamics during the first quarter,” added Antony.
Revenue for Q1 2024 was reported at $1,420,928, compared with $1,539,326 in Q1 2023. Gross profits were reported at $1,377,993 in Q1 2024, a 9.9 percent decrease from $1,528,883 in Q1 2023.
Operating expenses were nearly the same; $211,664 in Q1 2024, compared to $211,601 in Q1 2023.
The group added that, in Q1 2024, AutoCanada completed the restructuring of its U.S. division and began implementing Canadian operating standards, “which will have a positive impact in the coming quarters,” said Antony.
“These, along with our numerous Project Elevate initiatives to maximize gross profit, modernize our corporate infrastructure and optimize our cost structure, are the path to a lower cost and more profitable business in the future. I’d like to express my appreciation for the hard work and commitment of our employees and thank our OEM partners for their continued support,” he concluded.
Click here for more information on AutoCanada’s Q1 2024 results.
A message from Magna
Aurora, Ont.-headquartered Magna International reported its Q1 2024 financial results last Friday, disclosing a three percent increase in sales—but also US$316 million in asset impairments and restructuring costs associated with Fisker.
Magna builds the Fisker Ocean—an all-electric SUV—for Fisker. The latter failed to make a required interest payment in March 2024 while simultaneously warning it could soon seek bankruptcy protection.
The agreement between Fisker and Magna planned for the production of up to 120,000 units per year.
Magna reported a profit of US$9 million for Q1 2024, compared to US$209 million in Q1 2023. Sales for Q1 totalled US$10.97 billion, up from US$10.67 billion a year ago.
Click here for more information on Magna’s Q1 2024 results.
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