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Penske Automotive predicts record Q2 results

DETROIT — Penske Automotive Group expects record second-quarter results, with income from continuing operations topping more than $325 million, the company said Thursday as it announced preliminary results for the quarter ended June 30.

The second-largest auto retailer based in the U.S. last year said it also expects record earnings before taxes of more than $450 million in the second quarter and record earnings per share of more than $4 — soaring over results that were dampened a year earlier by the coronavirus pandemic and also surpassing second-quarter 2019 results.

Penske spokesman Anthony Pordon said income from continuing operations, earnings per share and earnings before taxes are predicted to be records for any quarter.

“Our business produced a record second quarter driven by strength across all areas of our business,” Penske CEO Roger Penske said in a statement. “Strong volume and vehicle margins, a reopening of the U.K. market, a growing Class 8 commercial truck market, record performance at Penske Transportation Solutions and continuing cost controls all contributed to the record performance.” 

Shares of Penske were trading about 1 percent higher in premarket trading Thursday to about $80.

The company said it would officially release second-quarter results on July 28.

Penske said the preliminary results also include a charge of nearly $13 million related to refinancing $500 million of senior subordinated notes.

The results compare to a tough second quarter of 2020, during the early months of the pandemic, when many dealership showrooms were shuttered for weeks. Penske’s net income tumbled 62 percent to $44.8 million in that quarter.

Penske, of Bloomfield Hills, Mich., ranks No. 2 on Automotive News‘ list of the top 150 dealership groups based in the U.S., retailing 178,437 new vehicles in 2020. But Lithia Motors Inc. — the third-largest group in the country in 2020 — surpassed Penske to become the second-largest retailer going forward with its April acquisition of the Suburban Collection.

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