AutoNation Inc , the largest U.S. auto dealership group, on Thursday posted quarterly results that exceeded analysts' expectations and said Toyota Motor Corp was making progress in its repair program.

AutoNation expects the impact on its earnings from Toyota's <7203.T> massive recall campaign to be less than 1 cent in the first quarter and nil in the second quarter, Chief Executive Mike Jackson said.

Net income slipped to $61.7 million, or 35 cents per share, in the fourth quarter, from $67.1 million, or 38 cents per share, a year earlier. Revenue rose 8 percent to $2.8 billion.

Excluding one-time items, AutoNation reported earnings from continuing operations of 29 cents per share. Analysts on average expected 27 cents, according to Thomson Reuters I/B/E/S.

(Reporting by David Bailey; editing by John Wallace)

Toyota