Today 09/30/2016 - 05:35:16 PM
Peugeot SA 13.595€
CAC 40 4,448.26 PTS
In the First Quarter of 2014, PSA Peugeot Citroën saw a rise in worldwide unit sales of 7.7%, supported by the recovery of the European market and by the strong growth in China. The Group was, however, impacted by a sharp deterioration in foreign exchange rates.
The Group pursued its turnaround plans with:
In 2014, PSA Peugeot Citroën expects to see automotive demand increase by around 3% in Europe2 , by approximately 10% in China, and a decline around 7% in Latin America and around 5% in Russia.
The Group positive Group operational free cash flow3 by 2016 at the latest, and €2 bn cumulated Group operational free cash flow over 2016-2018. It is also targeting to reach a 2% operating margin4 in 2018 for the Automotive Division, targeting 5% within the timing of the next mid -term plan 2019-2023.
Automotive Division revenues rose by 2.0% in the first quarter of 2014 to €8,925 million from €8,747 million in the year-earlier period. Worldwide sales of assembled vehicles rose by 7.7% over the period, to 726,000 units. This reflected a strong rise in volumes in both Europe (+16.0%) and China (+18.3%), versus declines in Latin America (-14.5%) and Russia (-7.9%).
Revenues from new vehicle sales amounted to €6,240 million compared with €6,070 million in first-quarter 2013, up 2.8%, driven by a 4.8% rise in unit sales ex-China, a positive 1.7% product mix effect thanks to recent model launches, and a positive 1.3% price effect, reflecting the consistency of the Group's pricing policy in a market where pricing remains stable at a high level, and a slightly positive market mix of 0.2%.
These favourable elements partially offset the strong negative currency effect of 4.5%.
New vehicle inventory stood at 422,000 units at 31 March 2014, up 8,000 units compared with a year earlier, reflecting the growth in volumes. The Group continues to tightly manage inventory, in line with its objectives of operating free cash flow burn reduction.
At end-March, orders for the Peugeot 308 totalled 70,000 units since launch, ahead of target, driven by the “Car of the Year” award in March 2014, the launch of the 308 SW version and the Pure Tech petrol and Blue HDi diesel engines, both of which offer best-in-class carbon emissions performance. To support the strong demand, an additional shift was introduced at the Sochaux plant.
The Peugeot 2008 is going from strength to strength, with 40,000 units sold over the quarter. The Group initiated a second project to increase production capacity at the Mulhouse plant.
The C4 Picasso and Citroën Grand C4 Picasso delivered another strong performance with 60,000 orders for the 5-seat version at the end of March and 35,000 orders for the seven-seater. High level versions accounted for 70% of sales. The Citroën C3 also returned to its very good sales performance. In addition, the quarter saw the reveal of the C4 Cactus, which illustrates Citroën's new positioning.
The partnership with Changan for the DS brand in China is developing, with new models planned in 2014, notably the DS 5LS in March, and a new DS 6WR SUV, announced at the Beijing Auto Show.
Faurecia reported revenues of €4,518 million for the first quarter of 2014, an increase of 3.4%, and 7% on a comparable basis5. The Quarter saw strong growth in Europe, Asia and Latin America, and revenues increased at all divisions.
Banque PSA Finance's revenues declined by 7.4% to €418 million in the First Quarter 2014, notably due to the effect of a lower loan book.
In April 2014, the Group signed new €3-billion syndicated credit facility comprising a €2.0-billion tranche expiring in five years and a €1.0-billion tranche expiring in three years with two optional one year extensions. The line of credit is contingent on the completion of the share and rights issues announced last 19 February.
1Contingent on the completion of the capital increases announced last 19 February
2Vs a market estimated by the Group to be slightly positive at around 2% in Europe and around 10% in China, with a 2% decline in Latin America, and a stable market in Russia on February 19, 2014
3Free cash flow of the Manufacturing and sales companies without restructuring and exceptional
4ROI relating to revenues
5Same perimeter and exchange rates