As an indication of the degree to which the economic pinch is making its way into the automotive sector, CarMax Inc. reported an almost fifty percent decline in its net profit on used car sales for the last quarter.

With net earnings of $21.8 million for the three-month accounting period ending February 29, CarMax's profits saw a dip of 48.2 percent over those one year ago.

CEO Tom Folliard, speaking to industry analysts via a conference call said, "CarMax just concluded a very challenging year and a disappointing fourth quarter from an earnings perspective."

Folliard went on to attempt to explain the drop in earnings as a reflection of the shaky condition of credit markets around the world. The finance arm of the company, CarMax Auto Finance, saw a $34.6 million drop in profits.

Overall, however, CarMax did report fourth-quarter revenues up 9 percent from those in 2007 to $2.04 billion and unit sales at locations that had been open for one year picked up 3 percent during the quarter.

Total units moved in the fourth quarter for the dealership group stood at 98,403, an increase of 13 percent from 2007 and there were 12 new CarMax lots opened during the fiscal year.

Ranking at 28 on the top 100 list of dealership groups in the United States compiled by Automotive News, Carmax operated 90 lots for used vehicles in 41 U.S. markets with six franchises selling new vehicles.