Although light vehicle sales in the United States are at 25-year lows, the largest dealership group in the country, AutoNation Inc., posted a first-quarter net income of $34.6 million.

The profit, as compared to $50.7 million a year ago, is due in part to $9 million in special gains, including an $11. million gain for senior note re-purchases and a profit on asset sales partially offset by property impairments.

Still, the company's revenues last quarter fell to $2.5 billion from $3.8 billion in 2008 and new-vehicle unit sales were down 43 percent, worse than the 38.4 percent downturn industry wide.

AutoNation ended the first quarter with cash and available revolving loans of $400 million and cut its debts by $500 million. The company sold 255,843 new vehicles.

"We remained solidly profitable during the first quarter even with a U.S. (sales rate) near 9 million new vehicle units, the lowest in nearly 30 years," said AutoNation CEO Mike Jackson in the statement accompanying the earnings report.

"We anticipate that we will see some strengthening in sales as the year progresses, with a 10 million unit (sales rate) for the second quarter and gradual improvement from that point through the balance of the year," he said.