Penske’s Same-Store Service & Parts Revenue Up 5.6% In Local Currency

The Penske Automotive Group (Bloomfield Hills, MI) generated $559.80 million in service and parts revenue from its retail automotive dealerships in the first quarter of 2019 — an increase of 3.0%. U.S. revenue was up 3.4%, and international revenue increased 2.2%.

Same-store service and parts revenue rose 3.0%. Excluding unfavorable foreign currency fluctuations, same-store service and parts revenue increased 5.6%. The same-store service and parts revenue increase came from a 9.8% rise in warranty revenue and a 1.2% increase in customer-pay revenue, partially offset by a 2.3% decrease in vehicle preparation and body shop revenue.

Gross profit from service and parts increased 4.2% to $331.40 million (also up 4.2% on a same-store basis). Excluding unfavorable foreign currency fluctuations, same-store gross profit increased 6.8%. The same-store gross profit increase came from a 9.8% rise in warranty gross profit, a 3.0% increase in customer-pay gross profit, and a 1.6% uptick in vehicle preparation and body shop gross profit.

Service and parts gross margin — both reported and on a same-store basis — grew from 58.5% a year ago to 59.2% for the three months ended March 31, 2019.

Penske, one of the largest automotive retailers headquartered in the United States, operated 339 retail automotive franchises as of March 31, 2019 — 149 of which were in the United States and 190 of which were located outside of the United States (primarily in the United Kingdom).