Penske Automotive Group,Inc. (NYSE:PAG) Files An 8-K Regulation FD Disclosure

Penske Automotive Group,Inc. (NYSE:PAG) Files An 8-K Regulation FD Disclosure
Item 7.01 Regulation FD Disclosure.

The following information is furnished to Item 7.01 “Regulation FD Disclosure.”

We hold a 28.9% ownership interest in Penske Truck Leasing Co., L.P. (“PTL”), a leading provider of transportation and supply chain management services. PTL is capable of meeting customers’ needs across the supply chain with a broad product offering that includes full-service truck leasing, truck rental and contract maintenance, along with logistic services such as dedicated contract carriage, distribution center management, transportation management, lead logistics provider and dry van truckload services. PTL is owned 41.1% by Penske Corporation, 28.9% by us, and 30.0% by Mitsui & Co., Ltd. We account for our investment in PTL under the equity method, and we therefore record our share of PTL’s earnings on our statements of income under the caption “Equity in earnings of affiliates,” which also includes the results of our other equity method investments.

On January 22, 2019, PTL announced that it intends to undertake a debt financing and has provided to its potential investors that, while it is in the process of finalizing its results for the fiscal year ended December 31, 2018, it estimates that consolidated net earnings for 2018 will be approximately $448 million (of which approximately $128.8 million would be recorded as earnings with respect to our 28.9% ownership interest).

The preliminary PTL financial data for the fiscal year ended December 31, 2018 included in this Item 7.01 has been prepared by, and is the responsibility of, PTL.PTL’s closing process for the period has not yet been completed. The preliminary PTL financial data presented above is therefore a preliminary estimate and is subject to change.Actual results could differ materially.