Penske Automotive Group Inc. reported a 14 percent gain in second-quarter net income, crediting increased business in used-vehicle sales, service and parts and finance and insurance.
But, like Asbury Automotive Group Inc., Penske also saw its gross profit margins per vehicle squeezed in both new and used vehicle sales.
The nation's second-largest dealership group said net income rose to $106.2 million in the quarter as revenue jumped 2.5 percent to $5.38 billion. Income from continuing operations gained 12 percent to $106 million.
The quarter is the best in the company's history, Tony Pordon, executive vice president of investor relations and corporate development, wrote in an email to Automotive News.
In a statement, Chairman Roger Penske said the results reflect "the diversity of our transportation services business model, driven by the solid performance of our U.S. and U.K. automotive markets, contribution from our used car super centers, and the benefit from the investment in Penske Truck Leasing."
Late last year, Penske purchased CarSense in the U.S., then early this year, it bought CarShop in the U.K. Both are stand-alone used-only stores.
Penske also noted a 130 basis-point improvement in automotive retail service and parts gross margin to 59.5 percent, saying, "Our performance continues to demonstrate and reinforce the adaptability of our business to market conditions."
North America accounted for 60.3 percent of Penske's revenue mix, while the U.K.'s share was 32 percent. The company's international holdings accounted for 7.7 percent of revenue.
Penske's automotive retail revenue rose to $5.04 billion vs. $4.84 billion.
Penske's total new-vehicle retail sales rose 2.8 percent to 63,919. Its used-vehicle sales also rose, by 25 percent, to 66,208, largely led by the acquisitions of CarSense and CarShop.
But, on a same-store basis, new-vehicle retail sales fell 3.4 percent to 59,983. Used-vehicle sales declined 0.1 percent to 52,813.
The average gross profit per vehicle, also on a same-store basis, fell to $2,956 from $3,106 on new vehicles and slid to $1,475 from $1,697 for used vehicles.
Per-vehicle gross profit in finance and insurance rose to $1,150 from $1,092.
Penske ranks No. 2 on Automotive News' list of the top 150 dealership groups based in the U.S., with retail sales of 249,695 new vehicles in 2016.