FORT LAUDERDALE, Fla. -

AutoNation notched a significant gain in used-vehicle gross profit during the second quarter, which along with a major lift in new gross profits, helped the retailer’s operating income climb double digits.

In other good news for its used operations, AutoNation moved 42,833 retail-used sales during the period, an improvement of almost 6 percent from the second quarter of 2010.

Overall, the dealership group pulled in $144.4 million in operating income, marking a 14.6-percent year-over-year hike. Retail used gross profits jumped 17.2 percent year-over-year, with new gross profit improving 25.6 percent.

“We delivered solid double-digit growth in operating income in the second quarter, which was driven by strong new- and used-vehicle gross profit,” stated Mike Jackson, chairman and chief executive officer of AutoNation.

“This quarter we once again demonstrated the strength of our diversified business model and our ability to react quickly and execute effectively in a changing marketplace,” he added.

Net income for AutoNation totaled $71.9 million, compared to $47.2 million in the year-ago period.

The company enjoyed a 7.5-percent lift in revenue, which came in at $3.34 billion. The major catalyst for this revenue hike was the stronger selling prices fetched by retail new and used vehicles, officials noted.

Breaking it down, new-vehicle revenue increased from $1.66 billion to $1.75 billion, used revenue jumped from $783.7 million to $887.3 million, with parts and service revenue totaling $572 million, up from $547.3 million in the second quarter of 2010.

Net F&I revenue reached $117 million, compared to $104.7 million in the prior-year period.

Sharing some details about its new-car side, in particular, AutoNation reported 51,824 new retail sales during the quarter, roughly even with the sum from a year ago.

Breaking that figure down by the company’s three operating units, the domestic segment moved 18,751 new vehicles (up 13.5 percent), the import segment declined 11.5 percent with 23,854 sales and the premium luxury segment was up 10 percent at 9,219 units sold.

Moving along, Jackson also offered some perspective on the overall auto environment in light of the ongoing recovery in the aftermath of the  Japanese disasters.

“We estimate that vehicle shipments from the Japanese manufacturers were approximately 40 percent below planned levels in the second quarter and that, by September, they will be approximately 10-15 percent below planned levels,” he said.

“Margins on vehicles from Japanese manufacturers benefitted from constrained supply, and while we believe that they will remain strong in the third quarter, we expect that the improving supply environment will result in lower margins on those vehicles as compared to the second quarter,” Jackson continued.

“We believe that the new-vehicle sales environment will begin to normalize in the fourth quarter of 2011, and we continue to be optimistic about the long-term recovery for the U.S. auto market,” he explained.

Half-Year Results

Next up, AutoNation shared its results from the first half of 2011.

The retailer’s net income from continuing operations increased from $108.8 million to $143.6 million. Net income totaled $141.3 million, up from $102.4 million.

First-half revenue came in at $6.65 billion, compared to $5.94 billion a year ago.

AutoNation sold 107,534 retail new units in the first six months of 2011, compared to 97,184 new vehicles a year ago.

Retail used sales reached 84,922 vehicles, an increase from 78,116 units sold in the first half of 2010.