Penske Auto Says Profit Falls 44% as Demand Slumps

Penske Automotive Group Inc., the U.S. auto retailer most reliant on luxury models, said third- quarter profit fell 44 percent as demand slumped. The shares rose on optimism that interest-rate cuts will boost the economy.

Net income declined to $24.2 million, or 26 cents a share, from $43.4 million, or 46 cents, a year earlier, the Bloomfield Hills, Michigan-based company said today in a statement. Penske abandoned its 2008 earnings forecast and didn't give a new one.

“We experienced a rapid decline in consumer interest for new vehicles in both the United States and the United Kingdom,'' Chief Executive Officer Roger Penske said in the statement. “It was a difficult quarter for auto retailers in our markets.''