Penske Automotive Q2 Total Revenue Up 16.6% To $2.7bn

Penske Automotive Group has reported total revenue of $2.7bn for the second quarter ended June 30, 2010, up 16.6% compared to $2.31bn for the same period in 2009.

According to the company, the revenue growth was driven by a 16.2% increase in new and used retail unit sales.

Total new retail unit sales increased 19.6%, including increases of 20.5% and 17.2% in the company's US and International operations, respectively, resulting in a 24.4% increase in total new retail revenue.

Used retail unit sales increased 12%, including increases of 17.1% and 4.2% in Penske US and International operations, respectively, resulting in a 13.8% increase in total used retail revenue, the company said.

For the second quarter of 2010, net income was $29.44m, compared to $14.07m for the same period in 2009. Operating income was $63.11m, compared to $52.55m for the same period in 2009.

For the six months of 2010, the company posted a total revenues of $5.18bn compared to $4.47bn. Net income was $49.79m, compared to $30.36m for the same period in 2009. Operating income was $120.25m, compared to $95.04m for the same period in 2009.

Roger Penske, chairman of Penske Automotive Group, said: Our new vehicle unit sales outperformed industry sales in both the US and the UK, and we maintained a greater than one to one ratio of used unit to new unit sales in our international markets.

Along with our strong operating performance, we have further reduced our leverage, resulting in a decrease in our long-term debt to capital ratio from 50% at the beginning of this year to 47% as of June 30.