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PSA Profits Climb as Opel Unit Revives
PSA Group reports its net income in the first half of 2018 grew 18% to €1.5 billion ($1.7 billion) as the turnaround of its 11-month-old Opel unit gains traction.
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PSA Group reports its net income in the first half of 2018 grew 18% to €1.5 billion ($1.7 billion) as the turnaround of its 11-month-old Opel unit gains traction.
The addition of Opel helped the company’s revenue zoom 40% to €38.6 billion ($45.1 billion) in January-June, aided by €9.9 billion ($11.6 billion) from Opel operations. Group operating income climbed 48% to €3 billion ($3.5 billion).
First-half unit sales rose 38% to 2.18 million units. Growth minus the contribution of Opel was 2% to 1.61 million vehicles.
CEO Carlos Tavares notes that PSA’s automotive operations saw operating income jump 30% to €1.9 billion ($2.2 billion) in spite of costlier raw materials and unfavorable exchange rates. He attributes the gain to increased sales, a richer product mix and continuing cost cutting.
PSA anticipates a “stable” market in Europe this year, with year-on-year growth rates of 2% in China, 4% in Latin America and 10% in Russia.
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