In announcing its second-quarter results Tuesday, Penske Automotive Group also announced the acquisition of Warner Truck Centers to its Premier Truck Group subsidiary.
Warner Truck Centers consist of six dealership locations across Utah and Idaho, including a flagship operation in Salt Lake City.
“This is an outstanding acquisition for our business and our customers, further solidifying our relationship with Daimler Trucks North America,” says Premier Truck Group President Richard Shearing. “Warner Truck Centers operate within key transportation corridors across the central northern U.S. market, providing our business with additional scale and leverage opportunities through an expanded footprint now representing 25 dealerships.”
Adds Roger Penske, Penske Automotive Group CEO, “We welcome Warner Truck Centers to the Penske team. The acquisition of Warner Truck Centers nearly doubles our retail commercial truck dealership revenue and enhances the company’s diversification while providing the opportunity for future growth and increased profitability.”
Penske Automotive Group stumbles in Q2 despite truck success
For the three months ended June 30, 2019, Penske Automotive reported income from continuing operations attributable to common shareholders of $117.7 million, or $1.42 per share, compared to $134.6 million, or $1.58 per share in the prior year.
“Our U.S. retail automotive, North American commercial truck dealership business, and investment in Penske Truck Leasing each performed very well during the second quarter. However, weak market conditions in the U.K. from BREXIT and the timing of customer deliveries in Australia impacted second quarter results,” says Penske.
In the company’s retail commercial truck operations, total medium and heavy-duty units retailed increased 23.2 percent, and revenue increased 26.0 percent to $426.8 million. For the six months ended June 30, 2019, total medium and heavy-duty truck units retailed increased 16.9 percent and revenue increased 20.3 percent to $759.1 million. Same-store revenue increased 26.1 percent and 19.7 percent for the three and six months ended June 30, 2019, respectively.
Penske Truck Leasing also recorded $38.0 million and $63.8 million in earnings in the second quarter compared to $35.0 million and $51.0 million for the same periods last year, respectively.
