Penske Automotive Group Inc.’s second-quarter web revenue 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 web revenue rose 10 % from a yr earlier to $375.9 million. Income, which Penske stated was harm by international foreign money trade, slipped 1.2 % to $6.91 billion.
Penske was aided by increased new-vehicle gross revenue per car and features in finance and insurance coverage revenue per car, plus increased total used-vehicle and repair and components income.
Whereas most of Penske’s income comes from automotive retail, the corporate additionally reported that pretax earnings from its industrial truck dealerships surged 32 %, pretax earnings for its Australian unit elevated 5 %, and revenue from its possession stake in Penske Transportation Options rose 33 %.
“Regardless of the provision constraints that proceed to influence stock availability, demand stays robust 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 automobiles, up 7 %. However Penske stated the unit misplaced $1.5 million pretax due to increased acquisition and reconditioning prices.
Penske operated 21 CarShop retailers 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.Ok. Penske additionally introduced it plans within the third quarter to purchase 5 Mercedes-Benz dealerships and three aftersales areas in London from Mercedes-Benz Retail Group. These websites are anticipated to generate about $550 million in income this yr.
Shares of Penske Automotive closed down 1.7 % to $108.35 on Tuesday.
Second-quarter income: $6.91 billion, down 1.2 % from a yr earlier
Second-quarter web revenue: $375.9 million, up 10 % from a yr earlier
Second-quarter car gross sales: 115,509 mixed new- and used-vehicle gross sales, down 13 %. On a same-store foundation, Penske bought 109,459 new and used automobiles, down 17 %. Penske did not specify U.S. car counts however stated its same-store new-vehicle gross sales slid 30 % within the U.S. and dropped 14 % within the U.Ok., 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.Ok.
Data: All-time revenue from persevering with operations earlier than taxes, web revenue and earnings per share of any quarter.
Rating: Penske, of Bloomfield Hills, Mich., ranks No. three on Automotive Information‘ record of the highest 150 dealership teams primarily based within the U.S., retailing 195,384 new automobiles in 2021.