Penske Automotive Group Inc.'s first-quarter net income more than doubled, generating the retailer's most profitable quarter ever, as used-vehicle revenue surged and the company's car dealerships produced higher gross profits across all business lines.
Penske reported Wednesday that net income soared to $369.5 million, up from $183.1 million in the year-earlier period. Revenue jumped 21 percent to $6.98 billion.
Shares of Penske Automotive rose 5 percent in premarket trading Wednesday. They closed down 1.25 percent to $99.22 on Tuesday.
In addition to robust proceeds from the company's light-vehicle dealerships, which made up the bulk of its income, Penske reported that pretax earnings from its commercial truck dealerships more than doubled, while pretax earnings for its Australian unit jumped 75 percent. Income from Penske's ownership stake in Penske Transportation Solutions more than doubled.
CEO Roger Penske said the company this year has repurchased $184.1 million of common stock and has acquired or opened dealerships adding about $665 million in annualized revenue to the company.
"Our results were driven by strong performance across the entire business," Penske said in the company's statement.