PSA profits jump ahead of Fiat Chrysler merger

View of the show room of the PSA Peugeot Citroen Group's headquarter during the presentation of their 2019 annual results, in Rueil-Malmaison, France, 26 February 2020. French car manufacturer PSA, owner of the brands Peugeot, Citroen, Opel and Vauxhall, reports a profit of 3.2 billion euros for 2019. EPA-EFE/CHRISTOPHE PETIT TESSON

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PSA Group said profitability reached fresh highs in 2019, though the automaker underscored a gloomy outlook for car sales in markets including Europe this year as it pursues its merger with Fiat Chrysler Automobiles.

Operating margin reached a record 8.5 percent as the company lowered costs and sold more expensive models such as SUVs including the Citroen C5 Aircross.

Group revenue increased 1 percent to 74.7 billion euros ($81.2 billion) despite falling vehicle sales, PSA said in a statement on Wednesday.

Adjusted operating income rose 11 percent to 6.32 billion euros ($6.87 billion) and net profit increased 13.2 percent to 3.2 billion euros.

PSA increased its 2019 dividend to 1.23 euros per share, up 58 percent from 2018 levels.

PSA’s global vehicle sales fell 10 percent last year to 3.49 million units.

PSA kept a target for the 2019-2021 average automotive adjusted operating margin of more than 4.5 percent, a level Chief Financial Officer Philippe de Rovira called a “floor” and very conservative.

Read more via Automotive New

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