Oct. 30 (Bloomberg) -- Penske Automotive Group Inc. jumped the most since 1996 in New York trading after posting a third- quarter profit, avoiding losses reported by three competitors.

Net income fell 44 percent to $24.2 million, or 26 cents a share, from $43.4 million, or 46 cents, a year earlier, the company said today in a statement. Bloomfield Hills, Michigan- based Penske also abandoned its 2008 earnings forecast and didn't give a new one.

Penske's parts and service business ``has been stable, so even in the horrific sales environment they were able to maintain profitability,'' said Rex Henderson, an analyst at Raymond James & Associates in St. Petersburg, Florida.

Penske is the auto retailer most dependent on luxury brands, which typically have higher profit margins than lower- priced vehicles. Lithia Motors Inc., Sonic Automotive Inc. and Group 1 Automotive Inc. reported quarterly net losses within the past week as the economic slowdown crimped car demand.

Penske jumped $1.37, or 22 percent, to $7.71 at 4:15 p.m. in New York Stock Exchange composite trading, the biggest advance in 12 years. The shares have plunged 56 percent in 2008.

Third-quarter sales slid 12 percent to $3 billion, a decline driven by dwindling consumer confidence, not credit availability, the company said. Revenue from parts and service increased 2 percent to $363 million as more buyers opted for repairs over new-vehicle purchases.

Earnings from continuing operations were 30 cents a share, excluding costs for severance and insurance deductibles for damage from Hurricane Ike at Houston-area dealerships, Penske said. Analysts had projected adjusted earnings of 32 cents a share, the average of 9 estimates compiled by Bloomberg.

Forecast Abandoned

The July 30 forecast Penske dropped today had been for earnings from continuing operations of $1.54 to $1.60 a share. That outlook replaced the projection affirmed in April for profit of $1.63 to $1.71 a share.

``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.''

Luxury brands including Bayerische Motoren Werke AG accounted for about 64 percent of Penske's inventory in the third quarter. General Motors Corp., Ford Motor Co. and Chrysler LLC models comprised about 5 percent.

``Normally, the emphasis on luxury would give Penske an advantage in a weak economic climate, said Henderson, the Raymond James analyst. ``Luxury is going to get hit at least as bad as the industry as whole'' in this quarter, he said. He rates Penske as ``underperform.''

The company is in compliance with all of its debt covenants and has $479 million of credit agreements with Daimler Financial Services Americas and Toyota Motor Credit Corp., a spokesman, Tony Pordon, said in an interview.

Asbury, the sixth-largest U.S. auto retailer, said today it entered into two new credit agreements for $104 million with Bank of America Corp. and JPMorgan Chase & Co.

To contact the reporter on this story: Alex Lange in Southfield, Michigan, at alange4@bloomberg.net

Last Updated: October 30, 2008 16:59 EDT