PSA reports profit for first half 2020 despite coronavirus impact

July 29, 2020

France’s Groupe PSA, the owner of the Peugeot, Citroën, DS Automobiles, Opel and Vauxhall car brands, has reported a profit for the first half of 2020, despite the impact of the coronavirus (COVID-19) on the automotive sector. 

During the period, PSA’s group net income fell to €595 million, down from €1.8 billion in the first half of 2019, while revenue fell by 34.5% to €25 billion. The group also raised expectations for cost savings in its pending €44 billion merger with Fiat Chrysler.

The group’s automotive division reported an operating margin of 3.7% in the first half of 2020, significantly lower than the 8.7% operating margin achieved in 2019. This remains in line with the group’s hope to achieve an operating margin of 4.5% for the period 2019–2021.

Carlos Tavares, PSA Group’s Chief Executive, stated, “This first half result proves the group’s resilience, as a reward of six consecutive years of intense work to increase our agility and lower our break-even point.” 

PSA’s ability to generate cash in the second half of the year will be “highly dependent on conditions under which we operate in the second half of 2020,” he added, explaining “we have no control on lockdowns.” 

Tavares stated that greater cost savings from PSA’s merger with Fiat Chrysler, announced in December, are now expected. The group’s original plans for €3.7 billion of synergies is now “a floor”, he stated, with a team of more than 500 PSA staff working to develop “proactive proposals” for more savings.

Tavarez stated that the merger transaction is on track to close in the first quarter of 2021. For the remainder of 2020, PSA anticipates a 25% decrease in the automotive market in Europe, a 30% drop in Russia and Latin America, and 10% drop in China. 

www.groupe-psa.com 

Latest Industry News

Download the latest issue of PM Review

Our latest issue is now available to download in PDF format, free of charge.

As well as an extensive Powder Metallurgy industry news section, this 92-page issue includes the following exclusive articles and reports:

  • The MPIF reflects on the state of the North American Powder Metallurgy industry in 2020
  • Next-level defect detection with advanced Acoustic Resonance Inspection
  • A fully-integrated automated production cell for increased PM productivity
  • MPIF Powder Metallurgy Design Excellence Awards showcase range of demanding applications
  • The micro-ingot route: A variant of the PM process that could offer new opportunities for the PM industry
  • More information

Industry News

E-newsletter

Sign up to our free e-newsletter, sent weekly to industry professionals around the world. We'll also let you know each time a new issue of PM Review magazine is available.

Subscribe for a FREE digital magazine

PM Review is the leading international magazine for the Powder Metallurgy industry.
Published four times a year, it is available as a free download or through a print subscription

Connect with us

Powder Metallurgy: The original net-shape production process

Powder Metallurgy components are relied upon by a wide variety of manufacturing industries, from automotive to power tools, household appliances, chemical engineering, filtration and more.

The main reason for the technology’s success is its cost-effectiveness at producing high volumes of net-shape components, combined with its ability to allow the manufacture of products that, because of the production processes, simply cannot be manufactured by other methods.

To discover more about how the technology has revolutionised component production, browse our Introduction to Powder Metallurgy.

Latest industry news

Copy link
Powered by Social Snap