Penske Automotive Group Inc. (PAG) recently announced the appointment of David K. Jones as the Executive Vice President and Chief Financial Officer (CFO) soon after the resignation of Robert O’Shaughnessy.
Surrendering his position in Penske, O’Shaughnessy has accepted a similar position with PulteGroup Inc. (PHM), one of the leading homebuilders in the country. On the other hand, Jones had been serving as the Vice President and CFO of the company’s European operations before he was given the new responsibility. He joined the company in 2003 and since then has successfully served in a number of leadership roles in the finance function.
Thus Penske believes that under Jones' leadership, the company will benefit from his experience and knowledge. This will enable the company to lay a solid foundation for success in the upcoming quarters.
Penske is in constant efforts to improve its performance and expand its business. In view of which, the company has approved a quarterly cash dividend of 7 cents per share for its shareholders, implying its first dividend payment since 2008.
Moreover, Penske acquired three franchises during the first three months of 2011, including an Audi franchise in Willoughby, Ohio and a BMW and a MINI franchise in the U.K. With these developments, Penske expects to contribute almost $100 million to its revenues annually. Further, it has planned to open Nissan and Infiniti franchises in downtown San Francisco, California during the third quarter of 2011.
At the end of last month, Penske reported its first quarter 2011 financial results with income from continuing operations of $36.4 million and revenues of $2.86 billion. Income surged 51.7% from $24 million in the year-ago quarter while revenues climbed 15.3% from $2.48 billion a year ago.
Penske maintains a Zacks #3 Rank on its shares, which translates into a short-term ‘Hold’ rating.
PENSKE AUTO GRP (PAG): Free Stock Analysis Report
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