Penske Automotive Group Inc.'s third-quarter net income slipped despite record revenue, as the retail giant was dinged by foreign currency exchange, lower used-vehicle revenue and declining used-vehicle sales.
Penske reported Wednesday that net income dropped 4.2 percent to $341.5 million. Revenue increased 6.5 percent to $6.9 billion. The company noted foreign currency exchange negatively impacted revenue by $349.4 million in the quarter, while it dropped net income by $11 million.
Penske said the average gross profit per new vehicle rose 12 percent to $6,678. The average gross profit per used vehicle, however, fell 27 percent to $2,004. Finance and insurance and service and parts revenues both increased in the quarter.
Revenue for Penske's stand alone used-vehicle CarShop division decreased 7 percent to $406.4 million on sales of 17,567 vehicles, down 5 percent.