Penske Automotive Group Inc. in Bloomfield Township today announced a 4 percent increase in fourth quarter 2023 revenue to $7.3 billion and a full-year revenue increase of 6 percent to $29.5 billion.
Penske Automotive Group is a diversified international transportation services company and one of the world’s premier automotive and commercial truck retailers.
“Our diversified business achieved the third best year of profitability of all-time,” says Roger Penske, chair and CEO of Penske Automotive. “Demand for new vehicles remains strong while used vehicle supply and affordability remains challenging. I am pleased with the continued growth in service and parts gross profit and our continued focus on controlling costs.”
In the fourth quarter 2023, revenue increased 4 percent to $7.3 billion. Income from continuing operations attributable to common stockholders decreased 36 percent to $190.7 million from $298 million and related earnings per share decreased 33 percent to $2.84 from $4.21 when compared to the same period of 2022. Fourth quarter 2023 results include a goodwill impairment charge of $40.7 million (before and after tax), representing $0.61 per share.
The goodwill impairment charge stems from the company determining the carrying value of goodwill in its used vehicle dealerships’ international reporting unit was greater than its estimated fair value.
Accordingly, Penske recorded a non-cash goodwill impairment charge of $40.7 million (before and after tax) for the quarter, which represents $0.61 per share for the three months and $0.60 per share for the 12 months ended Dec. 31, 2023. The charge is largely related to the reporting unit’s lower supply of quality, low mileage used vehicles for its customers due to lower sales of new vehicles across the industry in recent years, according to the company.
Highlights of Penske Automotive’s 2023 full year report include:
- Retail Automotive Same-Store Revenue increased 5 percent
- New Vehicle +12 percent; Used Vehicle -2 percent; Finance & Insurance -2 percent; Service & Parts +9 percent.
- Retail Automotive Same-Store Gross Profit decreased 0.4 percent
- New Vehicle -2 percent; Used Vehicle -21 percent; Finance & Insurance -2 percent; Service & Parts +9 percent
- Retail Commercial Truck Same-Store Revenue increased 1 percent
- New Vehicle +4 percent; Used Vehicle -25 percent; Finance & Insurance +2 percent; Service & Parts +3 percent
- Retail Commercial Truck Same-Store Gross Profit increased 3 percent
- New Vehicle +11 percent; Used Vehicle -10 percent; Finance & Insurance +2 percent; Service & Parts +3 percent
In other Penske Automotive year-end news, the Premier Truck Group, which sells commercial vehicles, increased revenue 4 percent to $3.7 billion. Penske Transportation Solutions, a provider of full-service truck leasing, truck rental, contract maintenance, and logistics services,
recorded $289.5 million in earnings compared to $490.0 million for the same periods in 2022. The decline was due to production timing and delivery delays, according to the company.
