Penske Automotive Group Inc.’s fourth-quarter internet revenue dipped because the auto retailer confronted decrease common gross earnings for every new and used car offered and hits by international foreign money alternate, although larger new-vehicle gross sales helped it attain report fourth-quarter income.
Penske reported Wednesday that internet revenue declined 4.3 % to $299.3 million, whereas income for the quarter climbed 11 % to $7 billion.
The corporate stated that international foreign money alternate diminished internet revenue by $6 million and income by $380.9 million within the quarter.
Penske CEO Roger Penske stated in a press release that the fourth quarter was “pushed by demand for brand spanking new automobiles in each our automotive and industrial truck dealerships coupled with continued service and elements income development and expense management.”
Income for Penske’s standalone used-vehicle CarShop division fell 15 % to $336 million on gross sales of 14,028 automobiles within the fourth quarter, down 5 %. For the complete yr, CarShop income rose 16 % to $1.73 billion on gross sales of 71,242 automobiles, a soar of 12 %.
Whereas most of Penske’s income comes from automotive retail, the corporate additionally reported that pretax earnings from its industrial truck dealerships elevated 14 % and revenue from its possession stake in Penske Transportation Options rose 9 % within the quarter.
Shares of Penske Automotive rose 1.2 % to shut at $136.44 on Wednesday.
This fall income: $7 billion, up 11 % from a yr earlier
This fall internet revenue: $299.3 million, down 4.3 %
This fall adjusted revenue from persevering with operations: $298 million, down 7 % from a yr earlier
This fall car gross sales: 108,333 mixed new- and used-vehicle gross sales, up 6.5 %. On a same-store foundation, Penske offered 102,906 new and used automobiles, up 2.3 %. Penske did not specify its U.S. gross sales.
Information: Fourth-quarter income and earnings per share. Yearly income, pretax earnings, revenue from persevering with operations and earnings per share
2022 income: $27.8 billion, up 8.8 %
2022 internet revenue: $1.4 billion, up 16 %
2022 adjusted revenue from persevering with operations: $1.38 billion, up 13 %
Rating: Penske, of Bloomfield Hills, Mich., ranks No. 3 on Automotive Information‘ most up-to-date checklist of the highest 150 dealership teams primarily based within the U.S., retailing 195,384 new automobiles in 2021.