Penske Automotive Group (PAG) has reported 1.04 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $87.50 million, or $1.03 a share in the quarter, compared with $86.60 million, or $0.96 a share for the same period last year. Revenue during the quarter grew 3.87 percent to $5,152 million from $4,960.10 million in the previous year period. Gross margin for the quarter contracted 26 basis points over the previous year period to 14.44 percent. Total expenses were 97.25 percent of quarterly revenues, up from 97.06 percent for the same period last year. That has resulted in a contraction of 20 basis points in operating margin to 2.75 percent.
Operating income for the quarter was $141.50 million, compared with $146 million in the previous year period.
Commenting on the companys results, Penske Automotive Group Chairman Roger S. Penske said, "Our business continued to perform well in the third quarter, producing another quarter of record results despite the translation effects from foreign currency headwinds. I was particularly pleased to see new and used gross profit per unit increase in the U.S. by $52 and $179, respectively. Further, the Brexit vote in the U.K. did not impact the company’s performance in the third quarter as our business remained strong, generating a 6.9% increase in their same-store unit volume."
Working capital increases sharplyPenske Automotive Group has recorded an increase in the working capital over the last year. It stood at $173 million as at Sep. 30, 2016, up 90.95 percent or $82.40 million from $90.60 million on Sep. 30, 2015. Current ratio was at 1.04 as on Sep. 30, 2016, up from 1.02 on Sep. 30, 2015. Cash conversion cycle (CCC) has decreased to 38 days for the quarter from 71 days for the last year period. Days sales outstanding were almost stable at 14 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 34 days for the quarter compared with 68 days for the previous year period. At the same time, days payable outstanding was almost stable at 11 days for the quarter, when compared with the previous year period.
Debt increases substantially
Penske Automotive Group has witnessed an increase in total debt over the last one year. It stood at $5,095.90 million as on Sep. 30, 2016, up 330.07 percent or $3,911 million from $1,184.90 million on Sep. 30, 2015. Total debt was 59.54 percent of total assets as on Sep. 30, 2016, compared with 15.44 percent on Sep. 30, 2015. Debt to equity ratio was at 2.85 as on Sep. 30, 2016, up from 0.65 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 11.89 for the quarter from 12.81 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
