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Penske Automotive Group – PAG – Record second quarter income

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Penske Automotive Group, Inc. (NYSE:PAG), an international automotive retailer, announced record second quarter income from continuing operations and related earnings per share. For the second quarter 2012, income from continuing operations attributable to common shareholders increased 26.4% to $49.5 million and related earnings per share increased 31.0% to $0.55 per share. This compares to income from continuing operations attributable to common shareholders of $39.2 million, or $0.42 per share in the same period last year.

PAG – Total revenue increased by 19.2% to $3.4 billion and was driven by an increase in total retail unit sales of 20.9%. The increase in retail unit sales was highlighted by a 24.8% increase in new unit sales and a 16.4% increase in used retail unit sales. Total same-store retail unit sales increased 12.0% in the second quarter. Same-store retail revenue increased 9.4% in the second quarter. Gross profit improved 12.6% to $513.4 million, operating income increased 29.5% to $90.3 million, and operating margin improved by 20 basis points.

PAG Highlights of the Second Quarter


  • Total Retail Unit Sales increased 20.9% to 84,346
    • +18.3% in the United States; +27.0% Internationally
    • New unit retail sales +24.8%
    • Used unit retail sales +16.4%
  • Same-store Retail Revenue increased 9.4%
    • New +13.8%; Used +5.4%; Finance & Insurance +13.4%; Service and Parts +0.6%
    • +13.5% in the United States; +2.4% Internationally
  • Average Transaction Price Per Unit
    • New $36,975; -1.0%
    • Used $25,666; -3.1%
  • Average Gross Profit Per Unit
    • New $2,969; Gross Margin 8.0%; down 50 bps
    • Used $1,972; Gross Margin 7.7%; down 60 bps
    • Finance & Insurance $980, down $9/unit

Chairman Roger Penske said, “The Company’s second quarter results reflect strong performance across both the U.S. and International markets. We experienced strong unit sales throughout the quarter, particularly through our Toyota, Honda and Lexus dealerships, and we increased our service and parts gross margin by 130 basis points to 58.6%. Further, I was particularly pleased that we were able to drive a 230 basis point improvement in selling, general and administrative expenses as a percent of gross profit.”

About Penske Automotive – PAG

Penske Automotive Group, Inc.( PAG) , headquartered in Bloomfield Hills, Michigan, operates 340 retail automotive franchises, representing 41 different brands and 30 collision repair centers. Penske Automotive, which sells new and previously owned vehicles, finance and insurance products and replacement parts, and offers maintenance and repair services on all brands it represents, has 170 franchises in 17 states and Puerto Rico and 170 franchises located outside the United States, primarily in the United Kingdom. Penske Automotive is a member of the Fortune 500 and Russell 2000 and has approximately 16,000 employees.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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