Penske Automotive Group on Wednesday posted record first-quarter revenue of $7.3 billion, up 5.2 percent from the same period in 2022. Net income for the publicly held company fell 18.9 percent to $299.6 million in the same quarter, while net income attributable to common stockholders fell 18.9 percent to $298.3 million.
"Despite higher interest costs, inventory challenges and other inflationary cost pressures, our performance continues to demonstrate the benefits of the company's diversification and the strength of its business model," CEO Roger Penske said in a written statement. "Automotive retail and commercial truck retail demand for new vehicles remains strong."
Foreign currency exchange negatively impacted revenue by $294.2 million and net income attributable to common stockholders by $8.0 million, the company said. Excluding that impact, same-store retail automotive revenue increased 6 percent and same-store retail automotive gross profit increased 2 percent.
The public dealership group's retail automotive same-store service and parts revenue was up 10 percent year-over-year to $643 million.
Total retail automotive revenue increased 4 percent to $6.3 billion. Total retail automotive gross profit increased 1 percent to $1.1 billion.
Retail automotive same-store revenue increased 2 percent year-over-year to $6.1 billion. New vehicle same-store revenue rose 9 percent to $2.6 billion, while used-vehicle retail same-store revenue fell 7 percent to $2.2 billion. Same-store finance and insurance revenue was down 7 percent to $200 million.
Premium brands represented 72 percent of Penske's retail automotive sales in the quarter.
Retail automotive same-store gross profit fell 2 percent. New-vehicle same-store profit fell 2 percent, while used-vehicle same-store net income dropped 23 percent. Finance and insurance profit was down 7 percent, and profit from service and parts was up 9 percent.
In the first quarter, Penske started transitioning certain brands in the U.K. to an agency model for new-vehicle sales. These dealerships received a fee for facilitating the sale of a new vehicle by the manufacturer. Penske does not record revenue for the vehicle price, the company said. The fees Penske received for facilitating those vehicle sales are included in new-vehicle gross profit.
Penske Automotive shares fell 0.75 percent to close at $135.88 Wednesday.
Other first-quarter earnings highlights:
Q1 revenue: $7.3 billion, up 5.2 percent from a year earlier.
Q1 net income: $299.6 million, down 18.9 percent.
Q1 net income attributable to common stockholders: $298.3 million, down 18.9 percent.
Q1 vehicle sales (including U.K. agency sales): On a same-store basis, Penske sold 117,619 combined new and used vehicles, up 4.8 percent. That total included 5,874 agency units sold in the U.K. Penske didn't specify its U.S. sales.
Penske, of Bloomfield Hills, Mich., ranks No. 3 on Automotive News' list of the top 150 dealership groups based in the U.S., retailing 185,831 new vehicles in 2022.