PSA Group’s Opel/Vauxhall (OV) division has posted a first-half profit of EUR502m (US$587m), while its parent recorded net income up EUR226m to EUR1.5bn.
Group revenue rose 40% to reach EUR39bn for the same period.
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PCD (Peugeot/Citroën/DS) Automotive division revenue amounted to EUR22.1bn, up 11.4% versus 2017 H1, mainly driven by volume and country mix (+5.4%), as well as product mix (+4.7%), and sales to partners (+3.2%), offsetting the negative impact of exchange rates (-2.9%).
OV revenue amounted to EUR9.9bn in the first half of this year.
Group recurring operating income amounted to EUR3bn, up 48.1% with PCD Automotive recurring operating income up 29.9% at EUR1.9bn. The 8.5% record profitability level was reached despite raw material cost increases and exchange rate headwinds, thanks to an increase of sales, a positive product mix and further cost reductions.
“The Group demonstrates since 2014 its recurring ability to level up global profitability, efficiency and volumes, despite strong headwinds,” said PSA chairman, Carlos Tavares.
“Opel Vauxhall teams start to deliver good results to build the New Opel Vauxhall and are eager to unleash further potential. Our agility and strong focus on execution remain a strong asset to reach our targets.”
Market outlook:
In 2018, the Group anticipates a stable automotive market in Europe and growth of 4% in Latin America, 10% in Russia and 2% in China.
Operational outlook reminder:
The Push to Pass plan sets the following targets for Groupe PSA (excluding Opel Vauxhall):
- Deliver more than 4.5% Automotive recurring operating margin[8] on average in 2016-2018, and target over 6% by 2021;
- Deliver 10% Group revenue growth by 2018[9] vs 2015, and target additional 15% by 20219.
