Penske Automotive Group‘s fourth-quarter net income fell due to lower average gross profits for new and used cars sold. The losses from currency exchange increased new-vehicle sales which allowed them to achieve record Q4 revenue.
On February 8, 2023, Penske said that while quarterly revenue increased 11% to $7 billion, net income fell 4.3% to $299.3 million. Additionally, the company said foreign exchange decreased revenue by $380.9 million and net income by $6 million in the quarter.
According to Roger Penske, CEO of Penske Automotive, the Q4 was “driven by demand for new vehicles in both our automotive and commercial truck dealerships along with strong service and parts revenue growth and expenditure control.”
Sales of 14,028 vehicles, which were down 5% year over year, brought in $336 million less revenue for Penske’s independent used-car CarShop division. CarShop’s annual income increased by 12 percent to $1.73 billion, or 16 percent, on sales of 71,242 vehicles.
The business also disclosed a pretax earnings gain of 14% from its commercial truck dealerships and a quarterly income increase of 9% from its ownership investment in Penske Transportation Solutions.
Feb. 7 closing price for Penske Automotive shares was $134.81, a 1.7 percent decline. In premarket trading, the shares increased by 2.4%.
Revenue for the fourth quarter was $7 billion, up 11% from the prior year.
Q4 net income was $299.3 million, a 4.3% decrease.
$298 million in adjusted income from continuing operations for the fourth quarter, 7% less than a year before.
Vehicle sales in the fourth quarter increased by 6.5% to 108,333 new and used vehicles. Penske sold 102,906 new and used cars, an increase of 2.3% on a same-store basis.
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