Brookfield’s CDK Posts 18% Earnings Drop as Software Fears Grow

Brookfield Business Partners-backed CDK Global reported a double-digit earnings decline in the fourth quarter, a sign of struggles at the company right as Wall Street scrutinizes how the software sector will hold up against advancements in artificial intelligence.

The privately-held company, which provides software to car dealerships, delivered financial results to investors late Tuesday. CDK reported about $127 million of pro forma earnings before interest, taxes, depreciation and amortization, a roughly 18% drop from a year ago, according to the people, who asked not to be identified discussing private earnings.