Penske: ‘Challenging’ Environment

By Staff Writer July 31, 2020

Penske Automotive Group Inc. announced second quarter and six-month 2020 results. For the three months ended June 30, 2020, the company reported income from continuing operations attributable to common shareholders of $45.0 million, or $0.56 per share, compared to $117.7 million, or $1.42 per share in the prior year. Foreign exchange had no impact on earnings per share. Revenue was $3.7 billion compared to $5.8 billion in the same period last year.

Second quarter performance was highlighted by the company’s diversification, with retail commercial trucks and Penske Transportation Solutions offsetting the challenging automotive retail environment early in the second quarter. In April and May, many of its U.S. and Germany dealerships were impacted by shelter-in-place orders while operations in Italy, Spain, and the U.K. were closed. As a result, same-store new and used automotive retail unit sales declined 71 percent in April and 50 percent in May when compared to the same month last year. In June, as operations began to reopen, same-store new and used automotive retail unit sales decreased 1 percent.

“The operating environment in the second quarter was one of the most challenging in memory,” Chairman Roger Penske said. “Since the COVID-19 pandemic began impacting operations, our teams took action to protect the safety of employees and customers, control costs, manage vehicle inventory, maximize gross profit and preserve liquidity. Through these actions, our business experienced sequential improvement from month to month in units retailed, service/parts gross profit and overall profitability.”

Penske continued, “Starting in late March, we furloughed approximately 15,000 employees, or 57 percent of the workforce. At the end of June approximately 14 percent of our employees remained on furlough. Additionally, we have reduced our workforce by approximately 8 percent as of June 30.”

For the six months ended June 30, 2020, the company reported income from continuing operations attributable to common shareholders of $96.6 million, or $1.20 per share, compared to $217.8 million, or $2.60 per share in the prior year.

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Last modified on Friday, 31 July 2020 13:51

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