FRANCE: PSA Q1 revenue up 4.6% to EUR13.7bn, Russia problematic
PSA has recorded Q1 revenues from new vehicles up 1.1%
PSA Peugeot Citroen has posted first quarter Group revenue up 4.6% to EUR13.7bn (US$15.1bn), but is forecasting a 30% plummet in Russia automotive demand this year.
Revenues from new vehicles were up 1.1% due to what PSA maintains is the "positive impact of product mix" as well as price and currency effects - primarily relating to the British pound - offsetting a decline in volumes.
Pro forma Automotive Division revenues including PSA's share of Chinese joint ventures rose 3.3% to EUR10.2bn, reflecting the strong increase in revenues from the Asian country.
In the first quarter of 2015, unit sales of assembled vehicles were sharply higher in Asia, Middle East-Africa and India-Pacific, while slightly lower in Europe.
Sales were also down in Latin America and Eurasia, where PSA says rightsizing measures on fixed costs are in progress.
In 2015, PSA expects to see automotive demand increase by 4% in Europe and around 7% in China, but decline by some 10% in Latin America and around 30% in Russia.
The Group aims to generate operating free cash flow of around EUR2bn during the period 2015-2017.
It is also targeting an operating margin of 2% in 2018 for the Automotive Division, with the objective of reaching 5% during the period of the next medium-term plan, covering 2019-2023.
News of the French automaker's gloomy forecast for Russia comes after PSA and Mitsubishi Motors' joint venture, PCMA Rus, said it would temporarily halt production of Mitsubishi, Citroen and Peugeot models in the country and cut 100 jobs.
The JV is stopping production of the Peugeot 408 and the Citroen C4 Sedan from 27 April to 10 July, while the SUV production line would be halted between 27 April and 12 May.
Mitsubishi's Pajero Sport and Outlander are assembled on the line.
Russia's Transport Ministry says it is looking to use RUB15bn of automotive subsidies in six months this year as Moscow aims to boost vehicle sales by 200,000 in 2015.
PSA Peugeot Citroën: first-quarter revenues up 4.6%
- Group revenues up 4.6% to €13.7 billion.
- Automotive Division revenues slightly up, to €9.0 billion.
- New car revenues including China up 5.5%1.
- The Group is ahead of schedule with its "Back in the Race" recovery plan and is benefiting from a favourable economic environment.
In the first quarter of 2015, consolidated revenues totalled €13,674 million, a 4.6% rise over the prior-year period. Automotive Divisionrevenues, excluding the contribution of the Chinese joint ventures, amounted to €8,950 million for the period, representing a slight increase on first-quarter 2014. Revenues from new vehicles are up 1.1%, thanks to positive impact of product mix and price and currency effects (primarily relating to the British pound), offsetting a decline in volumes.
Pro forma Automotive Division revenues1including our share of the Chinese joint ventures rose 3.3% to €10,217 million, reflecting the strong increase in revenues from China.
In the first quarter of 2015, unit sales of assembled vehicles were sharply higher in Asia, Middle East-Africa and India-Pacific, and slightly lower in Europe. Sales were also down in Latin America and Eurasia, where rightsizing measures on fixed costs are in progress.
In Europe, vehicle sales inched back 1%, whereas new car registrations grew by 4% over the period. In light of the increase in demand, PSA Peugeot Citroën announced that it would be increasing output over the next four months while at the same time pursuing its strategy to improve the pricing power of its three brands, Peugeot Citroën and DS.
In Asia, the Group achieved unit sales up by 9%, led by growth in the Chinese market.
In Latin America and Eurasia, sales are down 35% and 86% respectively, on markets also declining significantly by 12% and 36%. Sales are managed to reach breakeven within 201702, with actions to significantly lower the breakeven point, thus preserving the rebound capacity of the Group.
In the Middle East-Africa and India-Pacific regions, the Group's sales are up 19% and 32% respectively, with a particularly good performance in Turkey, up 47%.
At 31 March 2015, total vehicle inventory, including independent dealers, stood at 370,000 units, down 54,000 from a year earlier.
Faurecia's revenues amounted to €5,140 million, up 13.8% on the prior-year period.
Banque PSA Finance's revenues, accounted for on a 100% basis, rose 1.4% over the period, to €424 million3.
Commenting on the publication of the first-quarter revenues figures, Jean-Baptiste de Chatillon said: "We are speeding up the implementation of our "Back in the Race" recovery plan. We remain focused on carrying our targeted measures through to completion, irrespectively of the tailwinds we've enjoyed so far this year."
In 2015, PSA Peugeot Citroën expects to see automotive demand increase by 4% in Europe and by about 7% in China, but decline by some 10% in Latin America and around 30% in Russia.
The Group aims to generate operating free cash flow of around €2 billion over the period 2015-2017. It is also targeting an operating margin4 of 2% in 2018 for the Automotive Division, with the objective of reaching 5% over the period of the next medium-term plan, covering 2019-2023.
Original source: http://www.psa-peugeot-citroen.com/en/media/press-releases/first-quarter-revenues-46