PSA/Peugeot-Citroen posted a 2-percent surge in revenues in the first quarter of 2014 to EUR13.3 billion ($18.4 billion), the carmaker said in a statement. PSA attributed its performance in the quarter to the recovery of the European market and to strong growth in China.
PSA logged an 8-percent hike in global deliveries to 725,917 passenger vehicles, with gains of 16 percent in Europe and over 18 percent in China. Sales in Russia and Latin America dropped in the period. PSA said that stronger sales in Europe and China also offset the effects of a weaker Russian ruble, Argentinian peso and Brazilian real against the euro.
Currency fluctuations have trimmed revenues at the carmaker by around 5 percent. PSA Chief Financial Officer Jean-Baptiste de Chatillon described the period as “very positive quarter” that has allowed the carmaker to return to revenue growth.
He stated their priority is to make PSA profitable again, with focus is on pricing power and the strict price management. ISI Group analyst Erich Hauser said in a note that PSA's first-quarter results showed stronger growth than at Renault, noting its Europe recovering strongly with a supportive model cycle.
PSA said it received around 70,000 orders for its Peugeot 308 hatchback; 60,000 orders for the five-seat variant of the Citroen C4 Picasso and 35,000 for the seven-seat version of the C4 Picasso. The French carmaker, which has posted losses in the past two years, is partnering with Dongfeng Motor to expand outside Europe to China, which is currently the hottest and largest vehicle market in the world.
PSA chief executive Carlos Tavares is trying to turn around the carmaker by cutting costs and focusing on more profitable models. Tavares recently unveiled plans to stop the PSA’s financial by 2016 and shift back to to an operating margin of 2 percent in 2018 and 5 percent in 2023.