Penske Automotive Group is expected to report second quarter earnings of as high as 57 cents per share for continuing operations across its worldwide retail services and used vehicle dealerships.
"I am encouraged by the significant improvement in our operations during the month of June," CEO Roger S. Penske told PR Newswire. "Our performance in June is the result of a strong operational focus to control costs, manage vehicle inventory and maximize gross profit."
With all retail and automotive dealerships remaining open domestically, new and used unit sales improved sequentially over the quarter ending in June, as the focus on maximizing vehicle gross profit and managing selling kicked into high overdrive.
In the U.K., most dealerships resumed full operations by June 1, and since re-opening, sales of new and used vehicles have outperformed the general market.
Overall, Penske ended June 2020 with $1.2 billion in liquidity under its credit facilities. Company officials added they plan to repay $300 million in debt before Aug. 15, with availability under its U.S. credit agreement, which was undrawn at June 30. Further, assuming this $300 million was to remain outstanding under our credit agreement, the company would realize a benefit of approximately $6 million in annual interest expense savings.
Earlier this year, the company announced the suspension of its cash dividend with plans to reevaluate the situation going forward.
Based in Bloomfield Hills, Michigan, Penske has plans of releasing its financial results for the three and six months ended June 30 and 2019, before the market opens on July 29.
A Fortune 500 company, Penske is ranked among the World's Most Admired Companies by Fortune Magazine. For additional information, visit the company's website at www.penskeautomotive.com.
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