Penske Automotive’s Q2 internet earnings rises 10% to $376 million
Penske Automotive Group Inc.’s second-quarter internet earnings jumped as the corporate recorded its most worthwhile quarter ever, even amid a slight drop in income and decrease new- and used-vehicle gross sales.
Second-quarter internet earnings rose 10 % from a 12 months earlier to $375.9 million. Income, which Penske stated was harm by overseas forex change, slipped 1.2 % to $6.91 billion.
Penske was aided by greater new-vehicle gross revenue per automobile and good points in finance and insurance coverage revenue per automobile, plus greater total used-vehicle and repair and elements income.
Whereas most of Penske’s income comes from automotive retail, the corporate additionally reported that pretax earnings from its business truck dealerships surged 32 %, pretax earnings for its Australian unit elevated 5 %, and earnings from its possession stake in Penske Transportation Options rose 33 %.
“Regardless of the provision constraints that proceed to influence stock availability, demand stays sturdy and we proceed to learn from the diversification of our operations,” CEO Roger Penske stated in a press release Wednesday.
Income for Penske’s standalone used-vehicle CarShop division elevated 15 % to $468 million on gross sales of 20,124 autos, up 7 %. However Penske stated the unit misplaced $1.5 million pretax due to greater acquisition and reconditioning prices.
Penske operated 21 CarShop shops within the quarter, after it in May closed two small CarShop express locations in the U.K.
In April, Penske acquired a BMW-Mini dealership and a collision center in Southern California and introduced it had bought three BMW-Mini shops and a collision middle within the U.Okay. Penske additionally introduced it plans within the third quarter to purchase 5 Mercedes-Benz dealerships and three aftersales places in London from Mercedes-Benz Retail Group. These websites are anticipated to generate about $550 million in income this 12 months.
Shares of Penske Automotive closed down 1.7 % to $108.35 on Tuesday.
Second-quarter income: $6.91 billion, down 1.2 % from a 12 months earlier
Second-quarter internet earnings: $375.9 million, up 10 % from a 12 months earlier
Second-quarter automobile gross sales: 115,509 mixed new- and used-vehicle gross sales, down 13 %. On a same-store foundation, Penske offered 109,459 new and used autos, down 17 %. Penske did not specify U.S. automobile counts however stated its same-store new-vehicle gross sales slid 30 % within the U.S. and dropped 14 % within the U.Okay., and total had been down 26 %. Identical-store used-vehicle gross sales fell 11 % within the quarter and had been down 15 % within the U.S. and down 5 % within the U.Okay.
Information: Earnings from persevering with operations earlier than taxes; internet earnings; and earnings per share of any quarter
Rating: Penske, of Bloomfield Hills, Mich., ranks No. 3 on Automotive Information‘ checklist of the highest 150 dealership teams primarily based within the U.S., retailing 195,384 new autos in 2021.