Penske Automotive Group Inc. posted a 31-percent surge in net income to $245.7 million in full year 2013, on the back of a 12-percent rise in revenue to $14.71 billion. According to Sterne Agee analyst Michael Ward, Penske’s better-than-expected performance could be attributed to the company’s “luxury and import portfolio and concentration in the U.K. market” that accounted for 34 percent of revenue, and its “ability to improve cost accounted for the better-than-expected financial performance.”
“We expect the positive trends to continue in 2014,” Ward wrote in an investment note after the release of the results. Penske said that the United States accounted for 64 percent of its revenue while the United Kingdom accounted for 34 percent.
The rest of Penske’s revenues were from other international regions. In 2013, Penske posted a 12-percent rise in total retail unit sales and a 10-percent climb in new-vehicle retail sales to 199,795. For the fourth quarter of 2013, Penske logged a 21-percent jump in net income to $59.7 million, and a 15-percent gain in revenues to $3.86 billion.
The company logged an 11-percent leap in retail sales to 90,622 units, with sales of new units jumping 7 percent and used units rising 18 percent. On a same-store basis, retail sales -- new and used combined – surged 10 percent to 87,924. The company logged a 15-percent jump in used-vehicle retail sales to 166,419.
Penske is expecting its revenues for 2014 to surge at a “double digit” percentage clip. It also expects half of the growth to come from higher same-store sales and half from acquisitions. In 2013, Penske completed acquisitions or was awarded new stores that are expected to contribute $850 million in annual revenues.