UPDATE 1-Lithia Motors posts fourth-quarter loss

DETROIT, March 16 (Reuters) - Lithia Motors Inc
posted a quarterly net loss on Monday as the U.S. auto market
fought through the toughest downturn in 27 years.
The car dealership chain's net loss narrowed slightly in
the fourth quarter to $4.2 million, or 21 cents per share, as
compared with the loss $4.7 million, or 24 cents per share, a
year earlier.
Lithia reported a loss from continuing operations of 2
cents per share.
The company said it recorded a special gain of $3.6
million, or 8 cents per share after tax, from early retirement
of convertible notes.
Wall Street analysts on average had expected the company to
post a loss of 9 cents per share, according to Reuters
Estimates.
Revenue during the quarter fell to $406 million, from $574
million a year ago. Same-store sales for new and used vehicles
declined 39.2 percent and 17.4 percent respectively.
Lithia has been restructuring operations, including selling
some stores and cutting jobs to deal with the downturn in U.S.
auto industry sales.
The company said it will pursue additional cost savings and
aim to expand its market share in a declining market.
(Reporting by Poornima Gupta, editing by Maureen Bavdek)
((poornima.gupta@thomsonreuters.com; 313-967-1901; Reuters
Messaging: poornima.gupta.reuters.com@reuters.net))
Keywords: LITHIA/

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