Peugeot reaches profit record as stronger pricing overcomes weaker sales
Paris — PSA Group reported record profitability at its core manufacturing division in the first half of 2017, as stronger pricing enabled the maker of Peugeot and Citroen to overcome weaker sales in Europe and China. Net income rose 3.6% to €1.26bn on a 5% revenue increase to €29.17bn, the French car maker said on Wednesday, beating analysts’ expectations and sending PSA shares up more than 5%. Under CEO Carlos Tavares, the company has rebounded from near-bankruptcy and a 2014 bailout to boast an industry-leading profit margin in 2016, following cost cutting, a pared-down line-up and determined efforts to lift prices. The core automotive operating margin jumped from 6.8% to 7.3% in the first half, a "new historic high" for the Paris-based car maker, finance chief Jean-Baptiste de Chatillon said on a conference call with reporters. "We are now in position to deliver recurrent profitability," Chatillon said. "There are always headwinds, but we’re able to withstand them while maintaini...
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