(RTTNews) - Car dealer Inchcape Plc (INCH.L: News ) Tuesday said its total revenues for the third quarter declined from the prior year both in actual and constant currencies. Nevertheless, the group said it expects financial performance for the full year to be significantly ahead of previous expectations, sending the shares up nearly 4% in morning trade.

Total revenue for the quarter dropped 13.4% in actual currency and 16.5% in constant currency, but was 2.2% ahead of the second quarter in actual currency. On a like-for-like basis, revenues dropped 9.7% in actual currency and 13.7% in constant currency from the same period last year.

The London, UK-based company stated that revenues in the quarter had benefited from the impact of government scrappage incentive scheme in the UK and from a slightly improved trading momentum in Australia and Hong Kong.

Inchcape said its gross margin performance has been robust, reflecting the benefit from solid used car margins in markets and aftersales business. Cost base has benefited from Inchcape's restructuring program, which reduced workforce by 2350 positions and closed 31 sites over the last 12 months.

On a geographical basis, Inchcape stated that its UK retail segment has experienced a much stronger than expected third quarter results, benefited from scrappage incentive scheme and used car margins. In Hong Kong, trading performance has improved, and the company said it continues to gain share in Singapore in a weakening market. Inchcape added that, in Australia, it continues to enjoy a strong share momentum in a market that is gradually recovering. However, Eastern European and Russian markets remain difficult.

Demand for new vehicles in UK and mainland Europe remains weak, with the exception of Greece where market has been helped by government initiatives, Inchcape stated.
Chief executive officer André Lacroix said Inchcape has benefited in the third quarter from stronger than expected trading in various core markets.

Looking ahead, for the full year, the company expects financial performance to be significantly ahead of prior expectations. However, Inchcape anticipates conditions to remain challenging in most of its markets until well into the second half of 2010, reflecting unemployment and weak consumer confidence across the world.

"With increased share across our key markets, scale positions in established and emerging markets and industry consolidation opportunities in the medium term, we are confident that the Group is well positioned to continue to outperform our competitors and to benefit from market recovery," added Lacroix.

To receive FREE breaking news email alerts for Inchcape and others in your portfolio

 1   2   Next Page