Penske Auto quarterly earnings slip

DETROIT (Reuters) - Car dealership group Penske Automotive Group Inc (PAG.N) posted slightly lower quarterly earnings on Wednesday as a sharp downturn in U.S. sales of new vehicles overshadowed solid used car sales.

Net income slipped to $39.9 million, or 42 cents per share, in the second quarter from $40.4 million, or 43 cents per share, a year earlier.

Income from continuing operations was 43 cents per share, up from 42 cents per share a year earlier.

Revenue declined to $3.36 billion from $3.37 billion.

Same-store retail revenue declined 5.9 percent, as unit sales of new vehicles dropped 7.7 percent amid record gas prices, tighter credit and a housing market collapse.

But same-store retail unit sales of used vehicles rose 4.6 percent.

Bloomfield Hills, Michigan-based Penske operates 308 retail automotive franchises selling new and used vehicles, replacement parts and finance products.

(Reporting by Soyoung Kim; Editing by Derek Caney)