FRANCE: PSA reports 12% gain in Q3 revenue
PSA Peugeot-Citroen has reported that consolidated sales and revenue increased by 11.9% in the third quarter of 2007 to EUR14bn.
For the full nine months, sales and revenue amounted to EUR44.8bn, up 7.7% on the same period last year.
The company said that the gains reflected higher new vehicle sales, higher prices and an improved product mix.
The revenue figure came in above analysts' estimates.
The company reaffirmed a target for an operating margin of more than 2 percent in the second half of 2007, saying consolidated sales and revenue in the last quarter of this year are expected to increase from a year earlier in the period.
PSA's parts making unit Faurecia reported third-quarter sales of EUR2.8bn, up 8.7% from the same quarter last year.
Faurecia's Nine-month sales came to EUR9.3bn - up 8.8% on last year.
In the third quarter, PSA automobile sales rose by 11.9% year-on-year to 783,600, of which 734,600 was ssembled vehicles and 49,000 CKD units. For the nine-month period, sales of Peugeot and Citroën vehicles increased by 3.4% to 2,547,700 units, of which 2,405,700 assembled vehicles and 142,000 CKD units.
The company acknowledged that strong growth in third-quarter unit sales was partially due to a low prior-year comparative.
In a Western European market where demand for passenger cars and light commercial vehicles rose by a modest 0.4% for the first nine months of 2007, Peugeot and Citroën registrations increased by 0.8%. This gave the group a market share of 13.9%, compared with 13.8% a year earlier. 9 month unit sales increased by 2.5% to 1,740,900 units.
In Central and Eastern Europe, nine-month sales climbed by 21.6% to 134,100 units.
In the Mercosur countries, sales for the period were up 24.3% to 152,900 units in a market that continued to expand rapidly. The group improved its penetration in Argentina to 14.9%, with sales of 59,800 units in a market that grew by 25.4%. In Brazil, sales rose by 23.8% to 91,300 units, leading to a slight increase in market share to 5.4% versus 5.3%.
The group's sales in China expanded by 3.8% to 151,500 units, for a market share of 3.9%. In the third quarter, sales trended upwards, increasing by 6.8%.
In Russia, nine-month sales were up 31.9% year-on-year at 28,000 units in a market that also experienced rapid growth.
At 387,300 units, sales of the Peugeot 207 were in line with objectives. Peugeot strengthened its position in the small-car segment, led by the 107 and ongoing sales of the 206, while Citroën benefited from full ramp-up of the C4 Picasso, of which 148,000 units were sold. With the C4 Picasso and Xsara Picasso, Citroën saw its sales of compact MPVs increase by 68.5%, making the marque the European leader in the segment.
The market rollout of the Peugeot 308, available in the first dealerships as of mid-September, has fully met the marque's expectations, with order volume of 1,200 units a day, the company said.
PSA said that unit sales are in line with the CAP 2010 objectives. Sales in Western Europe are on track and on schedule in Russia. China experienced a difficult first half and measures to increase sales have been deployed at Citroën. Eastern Europe and the Mercosur countries are ahead of schedule.
Sales were increased while also improving pricing and the product mix, PSA said.
The company said that in the fourth quarter of 2007, consolidated sales and revenue should continue to increase over the prior-year period, although not as fast as in the third quarter.
The group confirmed its consolidated operating margin target of more than 2.0% in the second half.