PSA posts first-quarter revenue and sales drop image

Peugeot-Citroen Group’s first quarter revenue fell 1.4 percent because of “unfavorable” exchange rates, while sales decreased 1.7 percent.

PSA Group’s quarterly revenue reached 12.998 billion euros (14.7 billion dollars), down from 13.185 billion a year ago, pushed back because of negative currency effects. If such unfavorable conditions had not had an impact, revenue would have increased 1.5 percent, the French carmaker said. Furthermore, sales volumes dropped 1.7 percent during the quarter to 699,800 vehicles, even if the company’s biggest region – the European one – reported a solid 5.9 percent increase. However, the delivey figures were offset by a 17.9 percent fall in China and a further 22.2 percent decrease in Middle East and Africa, mainly in the Algerian market. Even with such negative reports, PSA said it continued to pursue its strategy of profitable growth.

“Mobilised around the ambitious objectives of our Push to Pass profitable growth plan, our three brands benefited fully from the success of the Back in the Race plan and the strong growth of the European market,” Jean-Baptiste de Chatillon, Chief Financial Officer of the PSA Group, stated. “Despite the volatile environment, we are confident in our performance and the achievement of our goals.”

The company aims to reach an average of a 4 percent automotive recurring operating margin in 2016-2018 and targets 6 percent by 2021, with further plans to boost by 10 percent the Group’s revenue in two years, from 54.7 billion euros in 2015, eyeing an additional 15 percent increase by 2021.