Penske Automotive Q2 earnings: One other report for quarterly income

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 p.c from a 12 months earlier to $375.9 million. Income, which Penske mentioned was harm by international foreign money change, slipped 1.2 p.c to $6.91 billion.

Penske was aided by greater new-vehicle gross revenue per automobile and positive aspects 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 p.c, pretax earnings for its Australian unit elevated 5 p.c, and revenue from its possession stake in Penske Transportation Options rose 33 p.c.

“Regardless of the availability constraints that proceed to influence stock availability, demand stays robust and we proceed to profit from the diversification of our operations,” CEO Roger Penske mentioned in an announcement Wednesday.

Income for Penske’s standalone used-vehicle CarShop division elevated 15 p.c to $468 million on gross sales of 20,124 autos, up 7 p.c. However Penske mentioned the unit misplaced $1.5 million pretax due to greater acquisition and reconditioning prices.

Penske operated 21 CarShop retailers within the quarter, after it in Might closed two small CarShop specific areas within the U.Okay.

In April, Penske acquired a BMW-Mini dealership and a collision heart in Southern California and introduced it had bought three BMW-Mini shops and a collision heart within the U.Okay. 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 12 months.

Shares of Penske Automotive closed down 1.7 p.c to $108.35 on Tuesday.

Second-quarter income: $6.91 billion, down 1.2 p.c from a 12 months earlier

Second-quarter web revenue: $375.9 million, up 10 p.c from a 12 months earlier

Second-quarter automobile gross sales: 115,509 mixed new- and used-vehicle gross sales, down 13 p.c. On a same-store foundation, Penske bought 109,459 new and used autos, down 17 p.c. Penske did not specify U.S. automobile counts however mentioned its same-store new-vehicle gross sales slid 30 p.c within the U.S. and dropped 14 p.c within the U.Okay., and total have been down 26 p.c. Identical-store used-vehicle gross sales fell 11 p.c within the quarter and have been down 15 p.c within the U.S. and down 5 p.c within the U.Okay.

Information: 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. 3 on Automotive Information‘ listing of the highest 150 dealership teams based mostly within the U.S., retailing 195,384 new autos in 2021.