Bloomfield Hills, Mich. - Penske Automotive Group, Inc., an international automotive retailer, today reported that first quarter income from continuing operations was $33.8 million, which represents a 17.4% increase over adjusted income from continuing operations of $28.8 million in the prior year. Related earnings per share were $0.36 in the first quarter, which compares to $0.31 per share in the prior year. Net income in the first quarter was $33.9 million, or $0.36 per share, compared with adjusted net income of $26.9 million, or $0.28 per share, in the prior year. Adjusted 2007 earnings exclude $12.3 million ($0.13 per share) of after-tax costs relating to the redemption of the Company's 9.625% Senior Subordinated Notes in March of 2007. In the first quarter of 2007, reported income from continuing operations and reported net income were $16.5 million, or $0.18 per share, and $14.6 million, or $0.15 per share, respectively.

Revenues in the first quarter increased 4.0% to $3.2 billion. On a same-store basis, retail revenues declined 2.3%, due primarily to a decline in new vehicle unit sales at the Company's U.S. dealerships. "I'm pleased with the performance of our business in the first quarter," said Penske Automotive Group Chairman Roger Penske. "While the new vehicle sales environment was difficult, particularly in the U.S., our business continued to perform well. In particular, I am pleased that we were able to generate same-store retail revenue increases in our used vehicle, finance & insurance, and service and parts operations. Further, our overall gross margin increased to 15.4%, due primarily to the strength of our used vehicle and service and parts performance." Penske continued, "I also remain excited about our distribution of the smart fortwo in the U.S., and am optimistic about its prospects and its potential to further diversify the Company's overall business model."

During the first quarter, the Company did not effect any repurchases under its previously announced share buyback authority. The Company currently projects earnings from continuing operations in the second quarter to be in the range of $0.45 to $0.47 per share, and continues to project earnings from continuing operations for the year in the range of $1.63 to $1.71 per share. Earnings per share information in 2008 is based on an estimated average of 95.0 million shares outstanding.

Courtesy: Penske Automotive Group, USA

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Posted by Jigar Gondalia on 29 April, 2008 5:21:20 PM IST #