AutoNation to Benefit from Tax Reform Bill
- AutoNation expects the recent tax reform bill to positively impact fourth quarter 2017 net income from continuing operations by approximately $41 million, or approximately $0.45 per share
- AutoNation estimates the recent tax reform bill will positively impact full year 2018 net income from continuing operations by approximately $75 million to $100 million, or approximately $0.80 to $1.10 per share
FORT LAUDERDALE, Fla. -- AutoNation, Inc. (NYSE: AN), America's largest automotive retailer, today announced that it expects a benefit of approximately $41 million in the fourth quarter of 2017, or approximately $0.45 per share, due to the recent tax reform bill and the one-time impact on its deferred tax liability. AutoNation also anticipates a benefit of approximately $75 million to $100 million, or approximately $0.80 to $1.10 per share, for the full year 2018, resulting from the decrease in the corporate federal tax rate.
AutoNation will use the savings from tax reform to invest in its future and its employees, through enhancing its benefits programs, including launching an innovative cancer program to assist employees and family members who were recently diagnosed with cancer, and investing in progressive training programs that will allow its associates to better serve its customers and drive their career advancement. The Company also plans to accelerate its brand extension strategy as well as further expand its Drive Pink initiatives.
AutoNation's Chairman, CEO and President, Mike Jackson, said, "We are excited about the pro-growth environment for business in the U.S., which includes the recently signed tax reform bill. As a U.S.-based company, our employees, customers and shareholders will benefit greatly from a reduction in our corporate tax rates."
About AutoNation, Inc.
AutoNation, America's largest automotive retailer, through its bold leadership, innovation and its comprehensive brand extensions, is transforming the automotive industry. As of December 31, 2017, AutoNation owned and operated 360 new vehicle franchises from coast to coast. AutoNation has sold over 11 million vehicles, the first automotive retailer to reach this milestone. AutoNation's success is driven by a commitment to delivering a peerless experience through customer-focused sales and service processes. Through its Drive Pink initiative, AutoNation is committed to drive out cancer, create awareness and support critical research. AutoNation continues to be a proud supporter of the Breast Cancer Research Foundation and other cancer-related charities.