By Noemie Bisserbe
PARIS--French car maker PSA Peugeot Citroen SA (UG.FR) said
revenue rose in the third quarter, lifted by strong growth in
Europe and China.
Peugeot reported a 1.6% increase in consolidated revenue to 12.3
billion euros ($15.71 billion) in the three months to September,
reflecting a 2.7% rise in revenue at its automobile division.
The increase is a positive sign for Chief Executive Officer
Carlos Tavares' new turnaround plan, who took the driver's seat
earlier this year after leaving Renault SA.
Europe's second-largest auto maker by volume, Peugeot has been
struggling to return to profit after racking up more than EUR7
billion of net losses in 2012 and 2013, forcing it to seek capital
from Chinese partner Dongfeng Motor Corp. earlier this year.
Peugeot vehicle sales rose 7% in Europe and jumped 44% in Asia
on recent new car model launches.
But the sustainability of the turnaround remains in question,
given the fragile nature of Europe's rebound in auto
sales--particularly in France--after six years of declines. The
shadow of political crises from Ukraine to Hong Kong and the
gyrations of emerging market economies in Latin America has cooled
the nascent auto recovery in Europe.
The French auto maker's ties to the fast-growing China market
through its shareholder Dongfeng Automobile Co. could, however,
give Peugeot the needed firepower to solve its European woes.
Peugeot left its guidance intact--recurring positive free cash
flow by 2016 at the latest, and a 2% operating profit margin in its
automotive division by 2018.
Write to Noemie Bisserbe at noemie.bisserbe@wsj.com
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