Penske Transportation Solutions Records 53% Increase in Q3 Earnings
OCT 26, 2020 - 7:19 am
In its Q3/20 earnings release, Penske Automotive Group reported that Penske Transportation Solutions, a provider of truck leasing, truck rental, contract maintenance and logistics, recorded $64.5 million in earnings in Q3/20 and $108 million in earnings year to date compared with $42.2 million and $106 million, respectively, for the same periods last year. The 53% increase in the third quarter was principally driven by improved operating results in full-service leasing and logistics, and a reduction in operating expenses.
In addition, Penske Automotive Group reported that earnings before taxes for its retail commercial truck dealerships were $23.4 million compared with $30.7 million in Q3/19. Total units retailed declined 5.3% and revenue declined 14.6%. On a same-store basis, new units declined 15.5% compared with North American Class 6-8 retail sales, which declined 31% during the period. Same-store revenue declined 4.5%.
For the nine months ended Sept. 30, 2020, Penske’s retail commercial truck dealership earnings before taxes were $51.7 million compared with $65.5 million in the same period last year. Total units retailed increased 6.9%, and revenue increased 2.1%. On a same-store basis, new units retailed declined 25.9% and same-store revenue declined 16.9%.
Overall, Penske reported income from continuing operations attributable to common shareholders of $246.5 million compared with $116.1 million in the prior year. Revenue was flat at $6 billion. Third quarter income from continuing operations and related earnings per share include a net income tax benefit of $15.4 million from various U.S. and foreign tax legislation changes. Excluding this net benefit, adjusted income from continuing operations increased 99.1% to $231.1 million.
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