November 7, 2019 / 7:53 AM / 12 days ago

UPDATE 1-Inchcape affirms 2019 outlook after third-quarter revenue rise

(Adds details on outlook, rivals, background)

Nov 7 (Reuters) - British car dealership Inchcape on Thursday reported a rise in third-quarter group revenue, citing the strength of its distribution business, and reiterated its full-year profit expectations.

The company, which sells new and used cars, including premium brands such as BMW, Audi and Mercedes-Benz, said revenue rose 3% to 2.4 billion pounds ($3.08 billion) on a constant currency basis, for the three months ended Sept. 30.

Inchcape is expected to post reported annual pretax profit of around 331.2 million pounds, according to Refinitiv Eikon data.

Shares in the company were seen rising about 2%.

The affirmed outlook comes a week after smaller rival Lookers issued its second profit warning in less than four months blaming dwindling consumer confidence and margin pressures in the British car market.

Pendragon also said last month it expected a loss despite cutting costs.

Inchcape said it expected stronger second-half underlying profit performance than in the first half, saying supply of Subaru cars in Australia has normalised after temporary constraints and shortages of hard currency needed to secure supplies in Ethiopia eased. The company, which has built up operations across parts of Europe, Latin America, Asia, Africa and Australia through a mix of acquisitions and organic expansion, reported a first-half profit of 153.7 million pounds.

Inchcape also said it would buy a Mercedes-Benz distributor in Uruguay and Ecuador for 47 million pounds.

$1 = 0.7789 pounds Reporting by Tanishaa Nadkar in Bengaluru Editing by Tomasz Janowski

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