Penske Automotive Group Inc’s.
Net earnings in the second quarter dropped 0.7 percent from the previous year’s quarter. While this represents a decrease $95 million in profit, Penske gives several reasons for the decline. The company says currency loss, a higher floorplan, and other interest costs are to blame.
However, total revenue rose by 6.8 percent to $5.25 billion. Expansions in each portion of the group’s retail car business as well its commercial-vehicle business are the cause. Penske’s car retail revenue has increased by 6.2 percent to $4.84 billion.
“I’m happy with the performance in the second quarter,” Chairman Roger Penske says in an announcement. “Not only did we deliver another quarter of record results, but we also continue to grow by procuring five business truck dealerships in Canada.”
“Further, the Brexit vote didn’t affect our business performance in the second quarter, and I am pleased to say that our U.K. business remains strong to date following the Brexit vote.”
The organization did not release U.K. results as far as units, income or benefits. Penske posted second-quarter records for retail unit sales, revenue, and wage from continuing operations.
Penske dealerships in the U.S. and abroad retailed 62,170 new vehicles in the second quarter. This is up 5.7 percent from the previous year. Penske also sold 52,936 pre-owned vehicles, a 6.8 percent increase from last year. Penske’s worldwide new-vehicle sales plunged 1.4 percent to 57,965.
On Wednesday, the organization gained an extra 14.4 percent interest in Penske Truck Leasing Co. with additions to GE Capital Global Holdings for about $498.7 million. As a result, Penske Automotive owns 23.4 percent of the organization, Penske Corporation 41.1 percent, Mitsui & Co. with 20 percent, and GE Capital 15.5 percent.
Penske Automotive Group of rural Detroit currently ranks No. 2 on Automotive News’ top 150 dealership companies in the U.S., with retail sales of 233,524 new vehicles in 2015.