Penske Automotive Group posted a 9% increase in net income during the third quarter. Penske attributed the improvement to the performance of its luxury franchises, strong used-vehicle sales and its drive to cut long-term debt.
The nation’s second-largest auto retailer said that its used-vehicle unit sales had double-digit increases. In particular, it recorded a 16.5% increase overall and a 20.6% surge at its US dealerships.
However, used-vehicle margins decreased when compared to the previous year. The publicly held retailer had $29.98 million in net earnings, as third-quarter revenues increased by 7% to $2.76 billion in when compared to the year-earlier period.
From January to September 2010, net earnings rose by 38% to $79.77 million as revenues increased by 12% to $7.95 billion.
In a statement, Chairman Roger Penske describes the new vehicle retail environment as “challenging.” Penske also said that the performance of its premium and luxury franchises and its focus on raising used-vehicle sales “drove [its] same-store retail revenue growth.”
Penske has been granted new dealerships and it is adding dealerships through acquisition. Penske anticipates that its new stores will deliver about $350 million in annual revenue for 2010.