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PSA Swing to a €1.2 Billion Profit
PSA Peugeot Citroen reports consolidated net income of €1.2 billion ($1.3 billion) in 2015, reversing a €555 million loss in the previous year.
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PSA Peugeot Citroen reports consolidated net income of €1.2 billion ($1.3 billion) in 2015, reversing a €555 million loss in the previous year.
The company’s unit sales rose only 1% to 2.97 million vehicles last year. But a richer mix helped revenue climb 6% to €54.7 billion. Operating income surged to €2 billion from €124 million in 2014.
PSA notes its recurring operating income has improved in all major markets over the past three years. Operational cash flow grew to €3.8 billion, far surpassing its €2 billion goal. Operating profits from automotive operations jumped to 5% of revenue, beating the carmaker’s goal of a 2% margin by 2018.
PSA has lowered its breakeven sales to 1.6 million units from 2.1 million in 2014 and 2.6 million in 2013. It also cut production costs by €211 ($231) per vehicle and expects to extend the per-unit savings to €500 by 2018.
The company, declaring its financial overhaul complete, says it will issue new growth targets later this year.
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