Penske Automotive Expects Q3 Results To Be Adversely Impacted By Hurricanes

(RTTNews) - Penske Automotive Group Inc. (PAG) said that it expects its third quarter 2017 financial performance to be adversely impacted by recent hurricanes. The company currently estimates that storm-related losses, expenses, and business interruption, net of expected insurance proceeds, will reduce earnings per share by $0.04 to $0.05 for the three months ended September 30, 2017.

The assessment of losses in Puerto Rico is ongoing and is expected to continue for the immediate future as basic services to the island resume.

Penske Automotive provided a preliminary estimate of the impact on its operations in Florida, Georgia, Texas and Puerto Rico from Hurricanes Irma, Harvey, and Maria. The company operates 19 dealerships and 3 collision centers in the affected areas which represented approximately 9% of the company's consolidated revenue for the six months ended June 30, 2017.

Hurricane Maria has significantly impacted the island of Puerto Rico, as the power grid and communication systems on the island have been severely damaged. As a result, certain of the company's operations have been suspended and are expected to remain impacted for the immediate future.

Hurricanes Irma and Harvey disrupted our operations in Florida, Georgia (Atlanta market), and Texas (Houston market). Operations in Florida and Texas were impacted for nearly one week while Georgia experienced a disruption in operations for 1-2 days. Operations in Florida, Texas and Georgia are now operating at full capacity.