Penske Automotive Group, Inc., the second largest auto group in the U.S., today provided a preliminary estimate of the impact on its operations in Florida, Georgia, Texas and Puerto Rico from Hurricanes Irma, Harvey, and Maria. The company operates 19 dealerships and 3 collision centers in the affected areas which represented approximately 9% of the company’s consolidated revenue for the six months ended June 30, 2017.
Hurricane Maria significantly impacted the island of Puerto Rico, as the power grid and communication systems on the island have been severely damaged. As a result, certain of Penske’s operations have been suspended and are expected to remain impacted for the immediate future. Their first priority in Puerto Rico is assisting their employees and families as recovery efforts continue on the island.
Hurricanes Irma and Harvey disrupted operations in Florida, Georgia (Atlanta market), and Texas (Houston market). Operations in Florida and Texas were impacted for nearly one week while Georgia experienced a disruption in operations for 1-2 days. Operations in Florida, Texas, and Georgia are now operating at full capacity.
Penske Automotive Group Chairman Roger S. Penske said, “The well-being of our associates and their families, some of which have suffered significant hardship, is our first priority. We are directly assisting those employees who suffered storm-related damages and have paid employees who were unable to work because of these hurricanes. The efforts of our employees in preparing our dealerships for the storms in the affected areas prevented significant losses and I thank them for their outstanding efforts.”
As a result of the hurricanes, the company’s third quarter 2017 financial performance is expected to be adversely impacted. The assessment of losses in Puerto Rico is ongoing and is expected to continue for the immediate future as basic services to the island resume. The company currently estimates that storm-related losses, expenses, and business interruption, net of expected insurance proceeds, will reduce earnings per share by $0.04 to $0.05 for the three months ended September 30, 2017.
