BLOOMFIELD HILLS, Mich. -

As part of record company profitability in the fourth quarter, Penske Automotive Group dealerships retailed 16.2 percent more used vehicles during the last segment of 2012 compared to the year-ago period.

Penske reported Wednesday that its stores turned 34,991 used units in the fourth quarter, up from 30,124 vehicles to close 2011.

While the company moved more used metal, Penske’s gross profit per used unit retailed softened a bit as margins tightened to $1,857 in the fourth quarter, down from $1,918 a year earlier.

Nonetheless, Penske computed that its income from continuing operations attributable to common shareholders reached new records. Income jumped 19.5 percent to $51.0 million as related earnings per share spiked 21.3 percent to $0.57 per share.

This compares to income from continuing operations attributable to common shareholders of $42.7 million or $0.47 per share in the same period last year.

Officials indicated fourth-quarter results include $1.7 million ($1.2 million after-taxes, or $0.01 per share) in expenses for insurance deductibles and clean-up costs associated with Superstorm Sandy.

Penske’s total revenue increased 17.9 percent to $3.4 billion, including a same-store retail revenue increase of 11.4 percent in the fourth quarter. The revenue increase was driven by a 19.3-percent increase in total retail unit sales, including an 11.5-percent increase on a same-store basis. Gross profit improved 16.9 percent to $515.1 million while operating income increased 19.9 percent to $91.5 million.

Chairman Roger Penske said, “I’m pleased that our retail automotive business reported record profitability in the fourth quarter, producing double-digit growth in operating income, income from continuing operations and earnings per share during the fourth quarter, despite the effects of Superstorm Sandy which impacted operations in the northeast U.S. during the quarter.

“I am particularly pleased that our same-store retail revenues improved by 11.4 percent while gross profit per retail unit stabilized, and service and parts margin improved 110 basis points to 58.8 percent,” Penske continued.

For the full year, Penske retailed 145,580 used vehicles, representing a 19.8-percent gain above the 2011 total of 121,501 units.

However, the company’s gross profit per used vehicle retailed was pinched 6.5 percent last year, falling from the 2011 figure of $2,089 to $1,953.

Developments in the used-vehicle department didn’t hinder Penske too badly as a whole.

Penske’s total revenue for 2012 increased 18.3 percent to $13.2 billion. Adjusted income from continuing operations attributable to common shareholders increased 25.8 percent to $206.0 million and adjusted earnings per share attributable to common shareholders increased 26.7 percent to $2.28 per share.

These figures compare to adjusted income from continuing operations attributable to common shareholders of $163.8 million, and adjusted earnings per share of $1.80 per share for 2011.

Penske added, “2012 was a very solid year of growth and profitability for our company. We expanded our presence globally by completing acquisitions in Northern Ireland and Italy, and we entered the Madison, Wisc., market in the U.S.

“In total, our business added $750 million in estimated annualized revenue through acquisitions during the year, and generated a 9.9-percent increase in same-store retail revenue, resulting in revenue growth of 18.3 percent, which contributed to a 23.4 percent increase in operating income and a 26.7 percent increase in adjusted earnings per share,” Penske went on to say.

Editor’s Note: Stay tuned to Auto Remarketing as well as sister publication SubPrime Auto Finance News, for more details about Penske’s objectives for 2013, including F&I targets and how the company plans to enhance its online presence.

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