Penske Automotive Group Inc.’s fourth-quarter income set a document for any quarter, as internet earnings reached a fourth-quarter excessive aided by hovering gross earnings for brand spanking new and used automobiles, finance and insurance coverage and repair and elements operations.
CEO Roger Penske mentioned the efficiency stems from the auto retailer’s diversified enterprise combine and execution.
Pretax earnings from Penske’s retail industrial vehicles division additionally jumped 69 % and the group’s possession stake in Penske Transportation Options additionally generated 62 % greater earnings.
In December, Penske purchased a BMW dealership in suburban Detroit that was a part of 2021 auto retail and industrial truck acquisitions and new level dealerships that it expects will add $1.3 billion in annual revenues.
In 2021, Penske opened six standalone used-vehicle CarShop shops, together with two within the U.S. and 4 within the U.Okay. Penske has 23 CarShop places and plans to have 40 shops by the top of subsequent yr.
Shares of Penske closed up 1.8 % on Tuesday to $102.79.
• This autumn income: $6.3 billion, up 8.3 % from a yr earlier.
• This autumn internet earnings: $312.9 million, up 55 % from a yr earlier.
• This autumn adjusted earnings from persevering with operations: $320.5 million, up 60 % from a yr earlier.
• This autumn automobile gross sales: Penske offered 101,732 automobiles, new and used, down 6.7 %. Penske did not present actual U.S. gross sales figures however mentioned same-store U.S. new-vehicle gross sales dropped 17 % and same-store U.S. used-vehicle gross sales rose 3 %.
• Information: Fourth quarter and yearly data for income, pretax earnings, earnings from persevering with operations and earnings per share.
• 2021 income: $25.55 billion, up 25 %.
• 2021 internet earnings: $1.19 billion, up 119 %.
• 2021 adjusted earnings from persevering with operations: $1.2 billion, up 128 %.
• Rating: Penske, of Bloomfield Hills, Mich., ranks No. 2 on Automotive Information‘ checklist of the highest 150 dealership teams based mostly within the U.S., retailing 178,437 new automobiles in 2020. However, Lithia — the third-largest group within the nation in 2020 — vaulted previous Penske to grow to be the second-largest retailer going ahead with its April 2021 acquisition of the Suburban Assortment.