KAR Auction Services Withdraws FY21 Outlook

(RTTNews) - KAR Auction Services Inc. (KAR), a global wholesale used vehicle digital marketplace operator, Monday said it is withdrawing its financial outlook for fiscal year 2021 due to the continued disruption caused by the chip shortage and the corresponding lack of visibility into used vehicle volumes in its marketplaces.

The company expects $95 million to $100 million of Adjusted EBITDA for the third quarter 2021 and expects approximately 2.6 million vehicles sold in 2021. The company said it does not intend to provide fourth quarter expectations at this time, due to the market uncertainty.

The company had earlier expected earnings from continuing operations of $0.30 per share, adjusted net income of $0.87 per share and EBITDA of $458 million for the year 2021.