Penske Automotive Group Inc.’s third quarter net income hit a record for any quarter thanks to higher used vehicle revenues and stronger new vehicle margins, even though its new vehicle sales fell 16% due to tighter inventories.

CEO Roger Penske in a statement Wednesday attributed performance to strength in all areas of the company’s business. Penske’s retail commercial truck division’s pre-tax profit more than doubled, and its stake in Penske Transportation Solutions generated 83 percent higher revenue.

Penske said that since the end of the quarter, it has bought the remaining 51% of a Japanese luxury distribution group in which it had previously invested. The company revealed in January 2016 that it had bought 49% of that group. The acquisition of the rest of the group is expected to add $ 250 million in annualized revenue. Penske also said Wednesday it has acquisitions under contract that represent an additional $ 300 million in annualized revenue.

During the quarter, Penske opened a new UK supercentre in its growing network of Autonomous Pre-Owned CarShop stores. In October, another store opened in the UK and another in Scottsdale, Arizona, marking Penske’s eighth CarShop location in the United States. Penske now has 22 CarShop locations en route to 40 planned outlets by the end of 2023.

Penske during the quarter repurchased 2 million shares for $ 178.9 million.

Penske shares closed 2.5% lower on Tuesday at $ 110.74.

  • Q3 turnover: $ 6.5 billion, up 8.8% from the previous year.
  • Q3 net income: $ 356.3 million, up 44% from the previous year.
  • Q3 adjusted profit from continuing operations: $ 354.8 million, up 53% from the previous year.
  • Vehicle sales in the 3rd quarter: Penske sold 114,823 vehicles, new and used, down 6.9%. Penske did not provide exact US sales figures, but said new vehicle sales in the United States at the same stores fell 3% and used vehicle sales in the United States. United in the same stores had jumped 12%.
  • Recordings: Profit before tax and net profit for each quarter.
  • Ranking: Penske, of Bloomfield Hills, Mich., Ranked # 2 on Automotive News‘most recent list of the top 150 US-based dealer groups, with retail sales of 178,437 new vehicles in 2020. However, Lithia – the country’s third-largest group in 2020 – has overtaken Penske to become the second-largest retailer is moving forward with its April acquisition of the Suburban collection.



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