AutoNation, the largest automotive retailer in the United States, exceeded analyst expectations in the third quarter and announced optimistic projections on Thursday as the industry seeks to climb out of a slump.

The Fort Lauderdale company reported a profit of $65 million, or 36 cents per share, in the third quarter ended Sept. 30. The profit included a nine cents a share boost from the ``cash for clunkers'' stimulus program, but would have seen a strong quarter regardless compared to last year's net lost of $1.41 billion, or $7.99, which included awritedown of the value of dealerships.

The per-share profit beat the 35-cent average of nine analyst estimates compiled by Bloomberg.

``We had four years of cyclical decline,'' Mike Jackson, AutoNation chairman and CEO told The Miami Herald. ``We're looking at four or five years of growth.''

Jackson added that cash for clunkers helped get stale inventory off the lot -- inventory that wouldn't budge because of disruptive events like the high gas prices of summer 2008.

``It was a strong signal to consumers that it was safe to go out and buy a car again,'' he said.

The company has also approved $250 million more to buy back its common stock. In the third quarter, it bought back 3.7 million shares for $65.8 million, or an average of $17.81 a share.

Revenue fell 13 percent to $2.92 billion, with volume declines in all three of the company's vehicle categories: domestic, import and premium.

AutoNation and its competitors have trimmed expenses by closing or selling dealerships and eliminating jobs as new-vehicle sales slumped in the U.S. recession.

Mike Maroone, president and chief operating officer, said the industry's depression and restructuring has caused manufactures to change the way they do business with dealerships -- creating a ``more rational business model.''

``There was constant friction between retailers and manufacturers over how much product we really needed,'' Maroone said. ``Over producing caused a lot of distressed selling.''

Beginning Nov. 1, AutoNation's 29 South Florida locations will provide full service seven days a week.

The program was tested at roughly a dozen stores in Tampa and Clearwater with success, Maroone said.

This week AutoNation also announced it acquired Valley Honda and Valley Acura in Spokane, Wash. The dealerships will be renamed AppleWay Honda and AppleWay Acura.

AutoNation shares have risen 83 percent this year as the company cut costs and as the rate of decline for new-vehicle sales in the United States has slowed. Shares closed Thursday at $18.07, down two cents.

Bloomberg News contributed to this report.