PSA revenue rises 8% on Opel purchase, pricing push
Auto News reported that PSA Group posted a 7.8 % increase in quarterly revenue, buoyed by its acquisition of Opel/Vauxhall as well as strong sales of pricier Peugeot models. Revenue rose to 15.43 billion euros (USD 17.58 billion) in the third quarter, the company said on Wednesday.
Under CEO Carlos Tavares, PSA has rebounded from near-insolvency in 2013 to record profitability. But remaining challenges include a collapse in Chinese sales.
Turnaround plans underway at the French operations and Opel plants in Germany and Britain are "a strong lever to deliver a sustainable performance despite an adverse environment," Chief Financial Officer Mr Philippe de Rovira said.
But global deliveries fell 17 % in the quarter, hit by PSA's withdrawal from Iran this year. The sales decline is understated by the consolidation of Opel/Vauxhall from Aug. 1, 2017 which also flatters year-on-year revenue comparisons.
The success of Peugeot's 3008 and 5008 SUVs helped to offset overseas sales setbacks and weakening currencies.
Strong pricing allowed the Peugeot, Citroen and DS brands to increase revenue by 0.8 % to 8.49 billion euros even as deliveries were flat in Europe, 45 % lower in China and down more than a quarter globally. Opel/Vauxhall automotive revenue came to 3.87 billion euros.
Pricing and so-called mix delivered a 3.7 % revenue boost at the French brands as sales shifted to plusher models, absorbing negative currency effects and the deliveries decline.
PSA reiterated mid-term goals including a 15 % increase in group revenue by 2021 excluding the Opel/Vauxhall business, whose acquisition they predate.
Source : Auto News