Penske Automotive Group in Bloomfield Township today announced its second quarter (Q2) financial results, which showed record quarterly earnings and income jumping 10 percent year-over-year to $374 million.
For the quarter, revenue decreased 1 percent to $6.9 billion. Foreign currency exchange negatively impacted revenue by $245.2 million. Excluding the impact from foreign currency exchange, revenue would have increased by 2 percent.
In Q2, income from continuing operations attributable to common stockholders was $338.8 million and related earnings per share was $4.20. Adjusted income from continuing operations was $360.2 million and related adjusted earnings per share was $4.47, reflecting increases of 4 percent and 10 percent, respectively.
“I am pleased to report that our diversified business delivered all-time record quarterly earnings for the second quarter of 2022, including a sequential improvement in earnings before taxes, income from continuing operations, and earnings per share when compared to the first quarter of 2022,” says Roger Penske, chair and CEO of Penske Automotive Group. “Despite the supply constraints that continue to impact inventory availability, demand remains strong, and we continue to benefit from the diversification of our operations.”
For the first half of 2022, the company reported a 9 percent increase in revenue to $13.9 billion. Income from continuing operations attributable to common stockholders increased 42 percent to $741.9 million, and related earnings per share increased 50 percent to $9.70.
Total retail automotive revenue decreased 3 percent to $6.0 billion in Q2, including an 8 percent decrease on a same-store basis when compared to the same period last year. Total retail automotive gross profit increased 2 percent to $1.1 billion, including a 3 percent decrease on a same-store basis.
The 21 CarShop used vehicle locations operated by Penske saw retail sales increase by 7 percent to 20,124 units while total revenue increased by 15 percent to $468 million, including an increase of 6 percent on a same-store basis.
For the first half of the year, retail unit sales increased by 32 percent to 39,647 while total revenue increased by 51 percent to $983.9 million, including an increase of 37 percent on a same-store basis.
In other markets, Penske Australia is the exclusive importer and distributor of certain heavy- and medium-duty trucks and buses and refuse collection vehicles, together with associated parts, across Australia, New Zealand, and portions of the Pacific and is a leading distributor of diesel and gas engines and power systems.
For Q2, revenue from Penske Australia decreased 14 percent to $140.9 million compared to $164.6 million in the same period last year. However, earnings before taxes increased 5 percent to $8.8 million compared to $8.4 million in the same period last year, and return on sales was 6.2 percent.
In the first half of 2022, revenue decreased 1 percent to $294.8 million compared to $296.8 million in the same period last year. However, earnings before taxes increased 34 percent to $19.3 million compared to $14.4 million in the same period last year and return on sales was 6.5 percent.
Meanwhile, Penske Transportation Solutions is a provider of full-service truck leasing, truck rental, contract maintenance, and logistics services. Penske Automotive Group has a 28.9 percent ownership interest in PTS and accounts for its ownership interest using the equity method of accounting.
For the three and six months ended June 30, 2022, the company recorded $136.6 million and $255.1 million in earnings compared to $102.5 million and $156.2 million for the same periods last year, representing increases of 33 percent and 63 percent, respectively.
The increase was principally driven by increased demand for PTS’s full-service leasing, rental, logistics services, and remarketing of used trucks, which resulted in a 14 percent return on sales for PTS during the Q2 2022.
