DETROIT -- Penske Automotive Group Inc. plans to more than double revenue for its standalone used-vehicle supercenters' business over the next three years, as it adds more than 20 locations by the end of 2023.
The nation's second-largest new-vehicle retailer made the announcement Wednesday as it reported fourth-quarter net income nearly doubled to $201.4 million. Revenue slipped 1.2 percent to $5.81 billion.
"I am very pleased to report 97 percent earnings growth for the fourth quarter," Penske CEO Roger Penske said in a statement. "Our results were driven by same-store retail automotive margin expansion, growth in our commercial truck dealership profitability and continued strong performance from Penske Transportation Solutions."
Adjusted net income from continuing operations jumped 97 percent to $199.9 million. That figure excluded a $200,000 gain, which came from the sale of dealerships, offset by tax costs to repay certain debt early. Penske sold two Honda dealerships in the Houston area during the quarter.
Also in the quarter, Penske opened a supercenter in Nottingham, England, that is expected to sell 6,000 vehicles a year. The retailer now has 17 standalone used-vehicle stores in the U.S. and the U.K.
Retail sales at the supercenters tumbled 23 percent to 11,923 vehicles, as revenue fell 16 percent to $244.7 million. The company said its U.K. supercenter business was hurt by a mandatory government shutdown in November amid the coronavirus pandemic.
As part of Penske's used-vehicle expansion, its U.S. supercenters, now operating under the CarSense name, will be rebranded to CarShop in a global branding effort, Penske said. Penske wants the unit by the end of 2023 to annually sell 150,000 or more vehicles and generate $2.5 billion to $3 billion in sales and about $100 million in pretax earnings. Last year, the unit's revenue fell 17 percent to $1 billion on sales of 53,207 vehicles. Sales volume was down a quarter.