Despite unfavorable economic indicators, Penske Automotive Group, Inc. reported a 17 percent increase in its income from continuing operations for the first quarter 2008 versus income from continuing operations during the same period last year. 'I'm pleased with the performance of our business in the first quarter, ' says Penske Automotive Group Chairman Roger Penske. 'While the new vehicle sales environment was difficult, particularly in the U.S., our business continued to perform well. ' According to the company, related earnings per share were $0.36 in the first quarter, which compares to $0.31 per share in the prior year. Net income in the first quarter was $33.9 million, or $0.36 per share, compared with adjusted net income of $26.9 million, or $0.28 per share, in the prior year. Adjusted 2007 earnings exclude $12.3 million ($0.13 per share) of after-tax costs relating to the redemption of the company's 9.625 percent Senior Subordinated Notes in March 2007. In the first quarter of 2007, reported income from continuing operations and reported net income were $16.5 million, or $0.18 per share, and $14.6 million, or $0.15 per share, respectively. Revenues in the first quarter increased 4.0 percent to $3.2 billion. On a same store basis, retail revenues declined 2.3 percent, due primarily to a decline in new vehicle unit sales at the company's U.S. dealerships. 'I am pleased that we were able to generate same-store retail revenue increases in our used vehicle, finance and insurance, and service and parts operations. Further, our overall gross margin increased to 15.4 percent, due primarily to the strength of our used vehicle and service and parts performance, ' Penske adds. 'I also remain excited about our distribution of the smart fortwo in the U.S., and am optimistic about its prospects and its potential to further diversify the company's overall business model. ' During the first quarter, the company did not effect any repurchases under its previously announced share buyback authority. The company currently projects earnings from continuing operations in the second quarter to be in the range of $0.45 to $0.47 per share, and continues to project earnings from continuing operations for the year in the range of $1.63 to $1.71 per share. Earnings per share information in 2008 is based on an estimated average of 95.0 million shares outstanding. For more information about Penske Automotive, visit the company's Web site. |
