PSA logs 1.6% jump in revenue in third quarter despite drop of core brand sales

Article by Andrew Christian, on October 23, 2014

PSA/Peugeot-Citroen posted a 1.6-percent jump in group revenues in the third quarter to EUR12.3 billion ($15.6 billion). Its core automotive division, however, logged a slight 0.8-percent dip in revenues in the quarter to EUR7.97 billion at the automotive division, despite a push on pricing. PSA said in a statement that the pricing push "only partially offset” the negative volume and currency effects.

The French carmaker said its group revenues were boosted by gains in Europe and China, which more than offset drops in Latin America and Russia. PSA said it still expects to post a positive operational cash flow by 2016. PSA Chief Financial Officer Jean-Baptiste de Chatillon even remarked that he would be "very disappointed" if the carmaker fails to achieve the goal early as this year.

PSA chief executive Carlos Tavares said in the statement that the carmaker’s “road back to a full recovery” is still long and it should remain “collectively focused on execution." The carmaker managed to log a 5.4-percent jump in global deliveries to 643,600 vehicles in the third quarter of 2014.

It posted a 44-percent surge in China and Southeast Asia and 7 percent in Europe. PSA updated its full-year vehicle-market forecast for Europe to reflect a jump of between 4 percent and 5 percent.

Such growth would be needed to offset sales decline in Russia and Brazil, which are both suffering from economic difficulties. So far this year, PSA’s sales were boosted by demand for the Peugeot 308 hatchback, the Peugeot 2008 crossover and the Citroen C4 Picasso minivan. PSA has forged a partnership with Dongfeng Motor Corp. as part its efforts to expand outside Europe.

Topics: psa, revenue

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