Penske Automotive Group Inc.’s fourth-quarter internet earnings dipped because the auto retailer confronted decrease common gross income for every new and used automobile bought and hits by overseas forex trade, although increased new-vehicle gross sales helped it attain file fourth-quarter income.
Penske reported Wednesday that internet earnings declined 4.3 p.c to $299.3 million, whereas income for the quarter climbed 11 p.c to $7 billion.
The firm stated that overseas forex trade decreased internet earnings by $6 million and income by $380.9 million within the quarter.
Penske CEO Roger Penske stated in an announcement that the fourth quarter was “driven by demand for new vehicles in both our automotive and commercial truck dealerships coupled with continued service and parts revenue growth and expense control.”
Revenue for Penske’s standalone used-vehicle CarShop division fell 15 p.c to $336 million on gross sales of 14,028 automobiles within the fourth quarter, down 5 p.c. For the total 12 months, CarShop income rose 16 p.c to $1.73 billion on gross sales of 71,242 automobiles, a bounce of 12 p.c.
While most of Penske’s income comes from automotive retail, the corporate additionally reported that pretax earnings from its industrial truck dealerships elevated 14 p.c and earnings from its possession stake in Penske Transportation Solutions rose 9 p.c within the quarter.
Shares of Penske Automotive closed down 1.7 p.c to $134.81 on Tuesday. The shares rose 2.4 p.c in premarket buying and selling.
This autumn income: $7 billion, up 11 p.c from a 12 months earlier
This autumn internet earnings: $299.3 million, down 4.3 p.c
This autumn adjusted earnings from persevering with operations: $298 million, down 7 p.c from a 12 months earlier
This autumn automobile gross sales: 108,333 mixed new- and used-vehicle gross sales, up 6.5 p.c. On a same-store foundation, Penske bought 102,906 new and used automobiles, up 2.3 p.c. Penske did not specify its U.S. gross sales.
Records: Fourth-quarter income and earnings per share. Yearly income, pretax earnings, earnings from persevering with operations and earnings per share
2022 income: $27.8 billion, up 8.8 p.c
2022 internet earnings: $1.4 billion, up 16 p.c
2022 adjusted earnings from persevering with operations: $1.38 billion, up 13 p.c
Ranking: Penske, of Bloomfield Hills, Mich., ranks No. 3 on Automotive News‘ most up-to-date checklist of the highest 150 dealership teams primarily based within the U.S., retailing 195,384 new automobiles in 2021.
Source: www.autonews.com