Penske’s profit almost doubled in the third quarter of 2011

Article by Christian Andrei, on November 4, 2011

Penske Automotive Group reported a quarterly profit that has almost doubled. The dividend of the second largest dealership group in the U.S. was increased by 12.5%. In a statement, Penske revealed that it had a net income of $55.7 million, or 62 cents per share. This is higher than about $30 million, or 38 cents per share the previous year. Its adjusted income, excluding a one-time income tax benefit, amounted to $45.7 million or 50 cents per share.

Its revenue increased by 10.5% to $3 billion, boosted by an improvement in used car sales and elevated prices for both new and used cars and trucks.

Its new car prices climbed by 8.4% to an average of $38,236. Meanwhile, used car prices increased by 2.2% to $26,404. Its profit margins increased on the new and used car sales. Penske gave a separate statement, revealing that its board supported a 12.5% boost in the dividend to 9 cents per share.

In a statement, President Rob Kurnick said that the dividend increase signifies "the confidence” it has in the recovering auto sales environment. In addition, Penske purchased over 2.4 million shares from January to September in 2011. The high-end luxury brands, such as BMW, made up 70% of Penske's new vehicle revenue in the past quarter. About 25% of sales came from Toyota Motor Corp., Honda Motor Co. and other overseas mass-market brands.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 2017
Amazon is now moving beyond the four corners of online retailing. Only recently, the retail giant has been awarded a patent for its Road Network system. Since the patented technology...
by - January 20, 2017
The newest version of the Lamborghini Huracan is not a Superleggera, but a Performante. When Lamborghini filed for a patent for a new name, there were still debates whether this...
by - January 20, 2017
What is hotter and more menacing than a Hellcat? If we ask Dodge, its answer would be the “Demon.” Of course, we aren’t talking about a demon with horns and...
by - January 20, 2017
The 2018 model year could be an exciting year for fans and enthusiasts of the Chevrolet Corvette. This comes as the 2018 version of the Corvette is bound to feature...
by - January 19, 2017
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