Penske Automotive posts record profit

BLOOMFIELD HILLS—Penske Automotive Group Inc. (NYSE: PAG) posted net income of $246.6 million or $3.07 a share in the third quarter of 2020, up from $116.2 million or $1.42 in the same quarter of 2019. Revenue was $5.97 billion, up from $5.96 billion a year earlier.

For the nine months, the transportation services provider reported net income of $343.4 million or $4.27 a share, up from $334.2 million or $4.03 a share a year earlier. Revenue was $14.63 billion, down from $17.29 billion a year earlier.

“I am very pleased to report all time record results for Penske Automotive Group in the third quarter,” said company Chairman Roger Penske. “These results were primarily driven by same-store retail automotive revenue and margin expansion, coupled with expense reductions which contributed to a 1,010 basis points decline in selling, general and administrative expenses as a percent of gross profit. Through our cost cutting efforts, we estimate that approximately $125 million to $150 million in annualized costs were eliminated across our various businesses I am particularly pleased that our strong cash flow has allowed us to significantly reduce long-term debt, lengthen maturities and reduce future annual interest expense by an estimated $17 million.”

Profitability at Penske’s 16 Used Vehicle SuperCenters more than tripled to $16 million from $4.8 million a year earlier. However, earnings before taxes at the company’s 25 medium- and heavy-duty truck dealerships fell to $23.4 million from $30.7 million a year earlier. Earnings at Penske Transportation systems, a provider of truck leasing, rental, maintenance, and logistics services, rose to $64.5 million in earnings for the quarter, up from $42.2 million a year earlier.

To listen to a conference call discussing these results, visit www.penskeautomotive.com.

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