France’s PSA Peugeot Citroen, the second largest European automaker, has announced surging first-half income on Wednesday, the first such achievement over the past four years.
The company also managed to post a completion asterisk next to most of its turnaround targets faster than forecasted, though it warned it could be impaired for the rest of the year by the toughening market conditions. Paris-based PSA Peugeot Citroen announced a net income of 571 million euros for the first six months of the year, which comes after losing 114 million euros during the same period last year, according to a company statement. Revenue was also on the rise, surging 6.9 percent to 28.9 billion euros. The core manufacturing profit jumped to 975 million euros, which took the divisional operating margin to 5 percent, the best mark in more than ten years, added the company. PSA added its operating free cash flow jumped by two-thirds to 2.792 billion euros for the January to June period.
The automaker decided to keep its medium-term recovery threshold unchanged at the moment although the goals have been met and exceeded during the six-month period, with the targets including a 2 percent auto division margin and 2 billion euros of cumulative cash flow by 2018. According to chief financial officer Jean-Baptiste de Chatillon, the operating income of 1.08 billion euros was lifted by around one third by the weaker European currency, sliding raw material prices and other seasonal aids. He also warned challenges could paint a bleaker picture for the rest of the year, including the weakness in China, where the company sees total market sales advancing just three percent this year.