February 8, 2018
Penske Automotive Group Inc. has reported total revenue increased $5.4 billion in the fourth quarter of 2017, an increase of 10.4 percent compared with the same period a year earlier.
Regarding the company’s retail commercial truck operations, Penske operates 20 medium- and heavy-duty truck dealership locations in the U.S. and Canada, offering primarily the Freightliner and Western Star brands. In the fourth quarter, the company’s operations retailed 2,294 units, generated $308.2 million of revenue and $45.1 million of gross profit. Same-store revenue increased 39 percent.
Penske also reported that, in 2017, the company increased its ownership interests in Penske Truck Leasing Co. LP, by 5.5 percent, bringing the company’s total ownership interest in PTL to 28.9 percent. In the fourth quarter, the company recorded $34.7 million in earnings from this investment, an increase of 38.8 percent, according to the company.
“Our business produced another quarter of record performance, driven by the U.S. retail automotive operations along with a 180 basis point increase in service and parts gross margin, a robust commercial truck business, our growing stand-alone used vehicle supercenter operations and our investment in Penske Truck Leasing,” says Roger S. Penske, Penske Automotive Group chairman.
“As we look forward to 2018, we remain excited about the growth prospects across our enterprise,” Penske adds. “Recently enacted tax reform positively impacts our business, presenting us with even greater opportunities to pursue our strategic initiatives, invest in our employees and improve shareholder value.”
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