The nation's third-largest automotive retailer earned $1.7 million, or 4 cents a share, for the three months ended March 31 compared with $12.6 million, or 31 cents a share, a year ago.

The results included $3 million in loss of operations and the sale of discontinued franchises and $2.3 million in loss from discontinued operations. They also included a $2 million expense for debt restructuring, which reduced results by 3 cents per share.

The company said profit from continuing operations was $5.4 million, or 13 cents per share. Excluding the charge, profit from continuing operations was 16 cents a share, the company said.

Revenue fell to $1.2 billion from $1.6 billion a year ago.

Analysts polled by Thomson Reuters expected a loss of 4 cents a share on higher revenue of $1.3 billion.

Shares fell 30 cents, or 4.5 percent, to $6.41 in morningtrading.

The company made a profit in the most difficult new car environment it's ever faced by trimming expenses by $23 million in the quarter, it said. Anticipated annual cost cutting measures are expected to result in a revised $135 million in savings, up from earlier estimates of $125 million.

Among the cuts was a 10 percent work force reduction.

"We are very pleased that despite the adversity in the new vehicle environment, Sonic set all-time new car market share records during the quarter," said President B. Scott Smith. "Our advertising and internet marketing initiatives resulted in 83 of our dealerships taking share by exceeding their local markets for the quarter."

He said the used car business outperformed the industry.

New vehicle sales fell to 590,266 from 897,679 in the year-before quarter. Used vehicle sales totaled 290,256, down from 320,713 a year ago.

The company operates 159 car dealerships in 15 states.

A service of YellowBrix, Inc.