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PSA Posts Record Sales, Earnings
PSA Group’s operating and net incomes last year climbed 23% to €4 billion ($4.9 billion) and 12% to €1.9 billion ($2.3 billion), respectively.
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PSA Group’s operating and net incomes last year climbed 23% to €4 billion ($4.9 billion) and 12% to €1.9 billion ($2.3 billion), respectively.
Revenue surged 21% to €65 billion ($79.4 billion), thanks to the company’s acquisition of General Motors Co.’s Opel/Vauxhall unit. PSA reported an unexpectedly modest €179 million ($219 million) loss for Opel since the company was consolidated in August.
PSA’s profit margin rose to a record 7.3% last year from 6% in 2016. Unit sales grew 15% to 3.63 million vehicles, including the contribution of five months of Opel/Vauxhall sales. When Opel is ignored, PSA’s sales advanced 3% to 3.22 million vehicles.
CEO Carlos Tavares says PSA is “very bullish” about reviving Opel, which hadn’t posted a full-year profit since 1999 under GM ownership. Chief Financial Officer Jean-Baptiste de Chantillon tells reporters the company is “very confident” about elevating Opel to sustainable profitability in 2020.
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