Penske Automotive Q2 earnings rise 29.5%

Editor's note: An earlier version of this story misstated Penske's total vehicles sold in the quarter. Total sales were 108,277 units.Penske Automotive Group Inc. reported second-quarter net income rose 29 percent driven largely by a high volume of vehicle sales and a solid performance in all business segments.The nation’s second-largest dealership group said today it posted net income of $95.7 million during the quarter, vs. $73.9 million during the same quarter last year. Revenue increased 12 percent to $4.90 billion during the quarter.Penske Automotive said it was helped by stronger performance in all areas of the business: new vehicles, used vehicles, parts and service and finance and insurance.“We just completed the best quarter and six-month period in the history of our company,” said Chairman Roger Penske in a media statement. “The performance of our business continues to demonstrate the flexibility and resiliency of the company’s brand mix and business model.”Second-quarter operating income rose 17 percent to $159.1 million.The U.S. comprised 62 percent of Penske’s revenue, its business in the U.K. made up 34 percent and “other” operations contributed 4 percent.Penske Automotive’s retail sales volume rose to a total of 108,277 units sold, up from 100,765 as the company retailed 58,758 new vehicles and 49,519 used vehicles.But on a same-store basis, gross margins per vehicle on both new and used declined slightly. Gross profit per new vehicle sold dropped to $2,992 from $3,125 and used fell to $1,780 from $1,978.On a same-store basis, retail revenue increased 6 percent to $4.5 billion. Penske’s retail sales on new units rose to 58,191 from 55,063 units. For the quarter, U.S. industry light sales increased 3.3 percent.Penske ranks No. 2 on the Automotive News list of the top 150 dealership groups in the United States, with retail sales of 216,462 new vehicles in 2014. CA100676729.PDFPenske Q2 reportCA100676729.PDF

Penske Automotive Q2 earnings rise 29.5%

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