Paced by a 25.1 percent jump in used-vehicle retail sales, Penske Automotive Group reported on Thursday that the company posted the highest quarterly income from continuing operations and earnings per share in company history during the second quarter.
Penske highlighted Q2 income from continuing operations attributable to common shareholders increased 11.9 percent to $106.0 million, and related earnings per share increased 10.8 percent to $1.23 when compared to the same period last year.
Through its international operations, Penske indicated that it retailed 66,208 units during the second quarter, up from 52,936 units a year earlier. While the company turned many more used vehicles, Penske acknowledged its gross profit per unit softened to $1,416, off from $1,697 in the second quarter of last year.
Meanwhile, Penske also improved its F&I gross profit per unit performance as the Q2 figure came in at $1,131, representing a rise of $39 year-over-year.
“I am pleased to report another quarter of record results, highlighting the diversity of our transportation services business model, driven by the solid performance of our U.S. and U.K. automotive markets, contribution from our used car super centers, and the benefit from the investment in Penske Truck Leasing,” Penske Automotive Group chairman Roger Penske said.
“Further, I was particularly pleased to see the 130 basis-point improvement in our automotive retail service and parts gross margin to 59.5 percent,” Penske continued, “Our performance continues to demonstrate and reinforce the adaptability of our business to market conditions.”
As a result, Penske’s board of directors approved an increase in the cash dividend to $0.32 per share for the second quarter.
Commenting on the dividend, Penske Automotive Group president Robert Kurnick Jr., said, "For the 25th consecutive quarter, the board of directors is pleased to offer an increase in the quarterly dividend for PAG's shareholders. This increase continues to demonstrate the confidence we have in our diversified business model."
The dividend is payable on Sept. 1 to shareholders of record on Aug. 10.