PSA Peugeot Citroen reports surprisingly strong third-quarter earnings image

The French company, the second largest automaker in Europe, has unveiled an unexpected third-quarter revenue growth, buoyed by continued increases in Europe and China that compensated Latin America and Russian losses.

According to a statement coming from the French carmaker – which is now ruled through a three way consortium between China’s Dongfeng, the French government and the Peugeot founding family – PSA saw a sales climb of 1.6% to 12.3 billion euros ($15.6 billion) from 12.1 billion euros in the same period of 2013.

Chief Financial Officer Jean-Baptiste de Chatillon told media representatives that PSA’s goal to reach positive operational cash flow by 2016 could be met as early as this year. CEO Carlos Tavares added in a statement though “the road back to a full recovery is still long.”

For the three months period, worldwide vehicle sales rose 5.4% to 643,600 units, supported by a 44% climb in deliveries in the China and Southeast Asia region and a 7% increase in Europe. PSA’s deliveries have been buoyed by the Citroen C4 Picasso minivan, the Peugeot 2008 crossover and the 308 hatchback, a car that also won the European Car of the Year accolade back in March.

According to the company, the full-year forecast for the auto industry in Europe has been lifted from the previous 3% to an increase of 4 to 5%, needed for the carmaker to properly offset steep drops in regions such as Russia or Brazil.

Via Automotive News Europe