Peugeot rallies as it swings to first profit since 2011
Shares in PSA Peugeot Citroen rallied after the French car maker swung to a profit for the first time in four years on the back of higher prices, a positive product mix and a favourable currency impact.
Peugeot
€21.85
16:30 01/09/22
First-half net income came in at €571m compared with a loss of €114m in the same period last year, as revenue rose 6.9% to €28.9bn.
The results marked a turning point for Peugeot, In February of last year, the French government and Chinese car maker Dongfeng bought large stakes in the company in a €3bn rescue package.
Carlos Tavares, chairman of the PSA Peugeot Citroen Managing board said: ““Our first-half results are very positive but we need to review them on a full-year basis.”
He added: "In this unstable international environment, the company and its staff – whom I thank wholeheartedly – must all be focused on the full execution of the ‘Back in the Race’ plan in order to secure the group's recovery."
Tavares’ ‘back in the Race’ strategy involves restructuring South American and Russian operations, expanding outside of Europe and streamlining product offerings.
Although the results were positive, the company sounded a note of caution in its outlook, saying it expects automotive demand to expand by 6% in Europe and around 3% in China but to contract by around 15% in Latin America and 35% in Russia.
In addition, Tavares told journalists at a press conference in Paris that the company will now adjust its China costs to the new pricing environment.
At 11:51, Peugeot shares were up 5.6% at €18.77.