Penske Q1 net rises 5.7% on higher sales

Penske Automotive Group Inc. today reported a 5.7 percent rise in first-quarter net income attributed in large part to the strength of its retail sales.The nation’s second-largest dealership group said net income rose to $80.2 million in the quarter as revenue jumped 7.6 percent to $4.82 billion. Operating income increased 6.3 percent to $144.1 million.“The resiliency of the U.S. and U.K. automotive markets and a solid performance from our truck dealership operations drove Penske Automotive to another quarter of record results,” Chairman Roger Penske said in a statement. “We believe the diversification provided by our business model continues to reward our shareholders.”Penske’s automotive retail revenue rose 7.8 percent to $4.51 billion. Revenue from its commercial-truck business gained 7.3 percent to $206.7 million.Shares in Penske Automotive surged 11 percent today to close at $40.06. Outpacing the marketPenske’s retail automotive sales grew 9.9 percent to 111,494 units. Total new-vehicle retail sales rose 10 percent on the quarter to 58,753 units. On a same-store basis, new-vehicle retail sales rose 4.2 percent to 55,457 units, outpacing the 3.3 percent gain for industrywide U.S. light-vehicle sales in the quarter. The U.S. accounted for 57 percent of Penske’s revenue mix, down from 60 percent a year earlier, while the U.K.’s share was flat at 35 percent. The company’s international holdings accounted for 7 percent of revenue, up from 4 percent in the first quarter of 2015.

Penske Q1 net rises 5.7% on higher sales

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