PSA Groupe chairman Carlos Tavares: "In a changing environment, all our teams are focused on operational excellence and continue to demonstrate their agility in deploying our Push to Pass strategic plan"

PSA Groupe chairman Carlos Tavares: "In a changing environment, all our teams are focused on operational excellence and continue to demonstrate their agility in deploying our Push to Pass strategic plan"

PSA Groupe has posted half year net income doubling to EUR1.2bn (US$1.32bn), although Group revenue fell marginally from EUR28m to EUR27.8m.

Automotive division revenue amounted to EUR19.2bn up 2.5% compared to the first half of 2015 at constant exchange rates, attributable to what PSA describes as "success of the models and the pricing power strategy."

Net of the unfavourable changes in exchange rates, it is down by 1.1%.

Total inventory, including independent dealers, stood at 399,000 vehicles at 30 June, up 8,000 units from end June, 2015.

"Our continued performance reflects the success of the company's structural transformation, its efficiency, and the profound change of spirit within the Group," said PSA Groupe chairman, Carlos Tavares.

"In a changing environment, all our teams are focused on operational excellence and continue to demonstrate their agility in deploying our Push to Pass strategic plan." 

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PRESS RELEASE
Paris, 27 July 2016
Good start for "Push to Pass" plan with record profitability for first half of 2016
? 6.8% of recurring operating margin1 for the Automotive division and 5.1% for Faurecia
? Net income, Group share, doubled to €1.2 billion
? €1.8 billion in Free Cash Flow2
? Roll out has started for the "Push to Pass" plan; the product blitz and international development have been launched. The PSA Group has greater agility than ever before for continuing its profitable growth.
Group revenue amounted to €27,779 million in the first half of 2016, compared to €28,036 million in the first half of 2015 (after restatement in accordance with IFRS 5, detailed in the appendices), growth of 2.4% at constant exchange rates. Net of the unfavourable changes in exchange rates, it is down by 0.9%.
Automotive division revenue amounted to €19,190 million, also up 2.5% compared to the first half of 2015 at constant exchange rates, attributable to the success of the models and the pricing power strategy. Net of the unfavourable changes in exchange rates, it is down by 1.1%.
Group Recurring Operating Income amounted to €1,830 million, up 32% compared to the first half of 2015. With Recurring Operating Income of €1,303 million, the Automotive division grew by 34% compared to the first half of 2015. This growth is buoyed particularly by increased volumes3, as well as the continued reduction of fixed costs and production costs.
Non-recurring operating income and expenses amounted to -€207 million, compared to -€343 million in the first half of 2015.
Group net financial expenses fell by half to -€150 million, compared to -€334 million in the first half of 2015.
Group consolidated net profit amounted to €1,383 million, up by €663 million. Net income, Group share, is €1,212 million, compared to €571 million in the first half of 2015.
Banque PSA Finance reported Recurring Operating Income of €297 million4, a rise of 1% compared to the first half of 2015.
Faurecia's Recurring Operating Income amounted to €490 million, an increase of €106 million compared to the first half of 2015.
Free Cash Flow of Manufacturing and sales companies amounted to €1,846 million, driven by improved funds from operations.
Total inventory, including independent dealers, stood at 399,000 vehicles at 30 June 2016, up 8,000 units from end June 2015.
1 Recurring operating income to revenue
2 In the first half of 2016, for Manufacturing and sales companies
3 Excluding China
4 100% of the results of Banque PSA Finance. In the financial statements of the PSA Group, the joint ventures are accounted for at equity, and the other businesses covered by the Santander agreement are reclassified under "Operations held for sale or to be continued in partnership".
Communications Division - www.groupe-psa.com - +33 1 40 66 42 00 - @GroupePSA
The Manufacturing and sales companies' net financial position at 30 June 2016 was a positive €5,972 million, up €1,412 million on 31 December 2015.
Market outlook
For 2016, the Group expects the automotive market to grow by about 4% in Europe and 8% in China, and to shrink by around 12% in Latin America and 15% in Russia.
Operational targets
The Push to Pass plan, unveiled on 5 April 2016, sets the following targets:
- Reach an average 4% automotive recurring operating margin in 2016-2018, and target 6% by 2021;
- Deliver 10% Group revenue growth by 20181 vs 2015, and target additional 15% by 20211.
Carlos Tavares, Chairman of the Managing Board of the PSA Group, said: "Our continued performance reflects the success of the company's structural transformation, its efficiency, and the profound change of spirit within the Group. In a changing environment, all our teams are focused on operational excellence and continue to demonstrate their agility in deploying our Push to Pass strategic plan."
Financial Calendar - 26 October 2016: 3rd Quarter 2016 Revenue
The PSA Group's consolidated financial statements at 30 June 2016 were approved by the Managing Board on 22 July 2016 and reviewed by the Supervisory Board on 26 July 2016. The Group's Statutory Auditors have completed their audit and are currently issuing their report on the consolidated financial statements.
The interim results report and interim financial results presentation for 2016 are available at www.groupe-psa.com, in the "Analysts and Investors" section.
Media Contact: (+33) 1 40 66 42 00 About PSA Group With its three world-renowned brands, Peugeot, Citroën and DS, the PSA Group sold 3 million vehicles worldwide in 2015. Second largest carmaker in Europe, the PSA Group recorded sales and revenue of €54 billion in 2015. The Group confirms its position of European leader in terms of CO2 emissions, with an average of 104.4 grams of CO2/km in 2015. With a fleet of 1.8 million connected vehicles on the road worldwide, the Group is on the cutting edge of innovation in this field, and is expanding its services as a mobility provider. It is also involved in financing activities (Banque PSA Finance) and automotive equipment (Faurecia).For more information, please visit groupe-psa.com/en
1 At constant (2015) exchange rates
Communications Division - www.groupe-psa.com - +33 1 40 66 42 00 - @GroupePSA
Appendices
The Group's interim 2015 financial statements have been restated in accordance with IFRS 5.
Impact of the plan to sell Faurecia's Automotive Exteriors business on the Group's financial statements comparatives (30 June 2015)
(in million euros)
First half 2015 as reported in July 2015
Automotive Exteriors
IFRS 5 impacts
First half 2015 as reported in July 2016 Group Revenue 28,904 (868) 28,036 Group Recurring operating income (loss) 1,424 (40) 1,384
Free Cash Flow*
2,792
(74)
2,718
* Manufacturing and sales companies: Automotive Division and Faurecia
Consolidated Income Statement
First-half 2015* First-half 2016
(in million euros) Manufacturing and sales companies Finance companies Eliminations TOTAL Manufacturing and sales companies Finance companies Eliminations TOTAL Revenue 27,904 140 (8) 28,036 27,684 102 (7) 27,779 Recurring operating income (loss) 1,365 19 - 1,384 1,823 7 - 1,830
Operating income (loss) 1,022 19 - 1,041 1,616 7 - 1,623
Net financial income (expense) (339) 5 - (334) (154) 4 - (150)
Income taxes (307) (13) - (320) (299) (11) - (310)
Share in net earnings of companies at equity 174 59 - 233 62 87 - 149
Profit (loss) from operations held for sale or to be continued in partnership 40 60 - 100 47 24 - 71
Consolidated profit (loss) for the period 590 130 - 720 1,272 111 - 1,383 Attributable to equity holders of the parent 448 123 - 571 1,102 110 - 1,212
Attributable to minority interests 142 7 - 149 170 1 - 171
Basic earnings per €1 par value share attributable to equity holders of the parent 0.73 1.51
* Restated according to IFRS 5
Consolidated balance sheet
ASSETS 31 December 2015 30 June 2016
(in million euros) Manufacturing and sales companies Finance companies Eliminations TOTAL Manufacturing and sales companies Finance companies Eliminations TOTAL
Total non-current assets
20,926
1,131
(2) 22,055 21,853 1,248 (1) 23,100
Total current assets
18,839
1,193
(608) 19,424 20,617 925 (647) 20,895
Total assets of operations held for sale or to be continued in partnership
616
7,048
(33) 7,631 777 3,826 (20) 4,583
TOTAL ASSETS
40,381
9,372
(643) 49,110 43,247 5,999 (668) 48,578
Communications Division - www.groupe-psa.com - +33 1 40 66 42 00 - @GroupePSA
EQUITY AND LIABILITIES 31 December 2015 30 June 2016
(in million euros) Manufacturing and sales companies Finance companies Eliminations TOTAL Manufacturing and sales companies Finance companies Eliminations TOTAL
Total equity 12,219 13,347
Total non-current liabilities 9,984 17 10,001 11,535 15 - 11,550
Total current liabilities 20,104 3,405 (551) 22,958 19,964 1,188 (604) 20,548
Transferred liabilities of operations held for sale or to be continued in partnership 401 3,623 (92) 3,932 420 2,777 (64) 3,133
TOTAL EQUITY & LIABILITIES 49,110 48,578
Consolidated Statement of Cash Flows
First half of 2015* First half of 2016
(in million euros) Manufacturing and sales companies Finance companies Eliminations TOTAL Manufacturing and sales companies Finance companies Eliminations TOTAL
Consolidated profit (loss) from continuing operations 550 (11) - 539 1,225 76 - 1,301
Funds from operations 2,566 (24) 1 2,543 2,798 69 - 2,867
Net cash from (used in) operating activities of continuing operations 3,453 6,161 54 9,668 3,187 907 (74) 4,020
Net cash from (used in) investing activities of continuing operations (1,305) (25) 136 (1,194) (1,560) 21 14 (1,525)
Net cash from (used in) financing activities of continuing operations (358) (496) 343 (511) (903) (173) (104) (1,180)
Net cash related to the non-transferred debt of finance companies to be continued in partnership - (6,829) (360) (7,189) - (2,258) 175 (2,083)
Net cash from the transferred assets and liabilities of operations held for sale or to be continued in partnership 34 (375) (254) (595) (78) 1,201 (11) 1,112
Effect of changes in exchange rates 146 - - 146 (95) 10 - (85)
Increase (decrease) in cash from continuing operations and from operations held for sale or to be continued in partnership 1,970 (1,564) (81) 325 551 (292) - 259
Net cash and cash equivalents at beginning of period 8,429 2,601 (129) 10,901 10,453 893 (54) 11,292
Net cash and cash equivalents of continuing operations at end of period 10,399 1,037 (210) 11,226 11,004 601 (54) 11,551
* Restated according to IFRS 5

Original source: PSA Groupe