Penske Automotive hikes income by 59% in 3rd quarter 2013

Article by Anita Panait, on November 1, 2013

Penske Automotive Group Inc. posted a 59-percent hike in net income in the third quarter of 2013 to $65.3 million. The dealership group also logged a 15-percent surge in revenue to $3.82 billion. The gains were partly attributed to the group's concentration of stores in the United Kingdom as well as to its feat of being able to keep down costs while having solid sales of finance and insurance products.

Group Chairman Roger Penske said in a statement that they remain confident in their ability to continue growing their business, adding that they expect both the US and UK markets to continue to perform well.

The company's operations in the US and the UK accounted for 63 percent and 35 percent of revenues in the quarter, respectively. The remaining 2 percent was accounted for by sales in other international market. The group's retail new-car sales surged 5 percent and retail used-car sales soared by 16 percent in the first three quarters of 2013.

Penske said that he expects the market to continue to accelerate. He remarked that some luxury carmakers like Mercedes-Benz and BMW will have many customers coming off lease in the next few months. "I see credit being strong," Penske said. The group chairman remarked that certified pre-owned growth remains strong due to the warranties being offered.

He also noted that the acquisition market remains "vibrant," saying that the group has the opportunity to "look both nationally and internationally." He disclosed that between 5 percent and 6 percent of Penske's future revenue will be from acquisitions as the group looks for deals locally and abroad.

He remarked that there are "a couple" of points the group is in the process of acquiring that should generate "a couple hundred million" in future revenue. The group is targeting Western Europe, where prices are "considerably less." The chairman said that the group has also entered Italy, with the progress to be reported in the next quarter. [source: Penske]

Topics: penske

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Although specs for the new Renault Megane had already surfaced several weeks ago, we didn’t know that the company has cooked up something new. Aside from the 200hp gasoline, Renault‘s...
by - December 9, 2016
For the first time in fifty-eight years, Infiniti registers its first US-Spec Q60 Coupe in Cuba. American products have not been allowed entry into Cuba for six decades. But it...
by - December 9, 2016
Chevrolet has already given out the pricing for some of its 2018 Equinox models. Not only will the new Equinox be available in both the US and Canada, it is...
by - December 9, 2016
Nearly all details have been set with regards to the upcoming market introduction of the new Jaguar I-Pace. Its production version was recently previewed at the 2016 Los Angeles Auto...
by - December 8, 2016
WM Motor, a new China-based automaker, recently revealed its forthcoming lineup consisting of affordable electric vehicles. While there is a company is the U.S. that has the same name, they...
by - December 8, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries