CarMax Inc. posted a 3 percent profit decline, better than analysts expected, as sales of the used vehicles that account for most of its business fell less sharply than sales of new cars.
Earnings for the first quarter ended May 31 dropped to $28.7 million from $29.6 million a year earlier. Revenue decreased 17 percent to $1.83 billion as consumers battled the longest recession since the Great Depression.
CEO Tom Folliard said reduced waste and increased efficiency at CarMax stores helped limit the earnings decline the "in the midst of the most challenging economic and credit environments in our history."
Unit sales of used vehicles, which account for about 96 percent the company's volume in 2008, fell 12 percent. New-car demand dropped 42 percent.
CarMax ranks 26th in the Automotive News ranking of the biggest U.S. dealership groups, based on 15,485 total new vehicle sales in 2008. The company sold 377,244 used vehicles last year, ranking it as the nation's largest seller of used cars.
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