Lithia Motors expects third-quarter profit surge


Lithia Motors Inc. said it anticipates third-quarter net income to surge and announced plans to raise more than $1 billion through debt and equity offerings.

The Medford, Ore., retailer said Tuesday that net income per diluted share will be between $6.10 to $6.40, an increase of 68 percent and 76 percent, respectively, compared with $3.64 per share recorded last year. Assuming Lithia retains about 23 million outstanding shares it reported in the second quarter, that would translate to a net income of $140 million to $147 million. That compares with a net income of $78 million in the second quarter in 2019 and $85 million in the third quarter.

Lithia also said it expects to report revenue rising “in the mid- to high single-digit range” compared with 2019’s reported $3.3 billion for the third quarter.

Separately, Lithia announced plans to raise $1.2 billion in capital through debt and equity offerings. The company expects $500 million to come from a senior note and at least $700 million through a common stock offering, though that figure could increase an additional $105 million through a separate stock sale.

Lithia executives did not respond to requests for comment.

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