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Groupe PSA H1 Profit Declines On Weak Demand, Sees Solid Rebound In H2; Backs Outlook

(RTTNews) - French automaker Peugeot S.A. or Groupe PSA (PEUGF.PK) reported Tuesday that its first-half net profit group share was 595 million euros, down from 1.83 billion euros a year ago.

The company said it remained profitable in the first half, despite Covid-19 pandemic.

Operating income fell to 482 million euros from last year's 2.49 million euros. Group adjusted operating income fell 84.5 percent from the prior year to 517 million euros. Automotive adjusted operating income was down 72.5 percent to 731 million euros.

Group adjusted operating margin reached 2.1 percent, down 6.6 percentage points from the prior year.

Group revenue amounted to 25.12 billion euros, down 34.5 percent from last year's 38.34 billion euros. Automotive division revenue fell 35.5 percent.

Looking ahead, Groupe PSA said it still expects to deliver over 4.5 percent Automotive adjusted operating margin on average for the period 2019-2021.

For 2020, the company anticipates a significant decrease in the automotive market in the various regions in which it operates. The company anticipates a decrease by 25 percent of the automotive market in Europe, by 30 percent in Russia and Latin America, and by 10 percent in China.

Carlos Tavares, Chairman of Groupe PSA Managing Board said, "We are determined to achieve solid rebound in the second half of the year, while finalizing the birth of Stellantis before the end of Q1 2021."

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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