• Automotive recurring operating income at €1,442 million up by 10.7%, representing a record recurring operating margin of 7.3%1
• Group revenue at €29,165 million, up 5% vs 2016 H1
• Record Faurecia recurring operating margin1 at 5.7%
• Record Net income, group share, at €1,256 million
• Growth of net financial position at €7,631 million thanks to a positive €1,116 million Free Cash Flow2
“Groupe PSA record performance was achieved thanks to our customers who have made our last commercial launches great successes, and thanks to the continuous commitment of all Group employees in the execution of the Push to Pass plan, combining agility and business sense. The way the teams overcame headwinds brings confidence for the coming challenges.” said Carlos Tavares, Chairman of Groupe PSA Managing Board.
Group revenues amounted to €29,165 million in the first half of 2017, up 5.0% compared to €27,779 million in the first half of 2016. The cumulated growth since the beginning of Push to Pass, excluding exchange rates impact, stands at +8.2%3 .
Automotive revenues amounted to €19,887 million, also up 3.6% compared to the first half of 2016, benefiting from the success of the new models and the pricing discipline.
Group recurring operating income amounted to €2,041 million, up 11.5% compared to the first half of 2016. The Automotive recurring operating income grew by 10.7% compared to the first half of 2016 at €1,442 million. This 7.3% record profitability level was reached despite raw material cost increases and exchange rate headwinds, thanks to a positive product mix and further cost reductions.
Group non-recurring operating income and expenses had a negative impact of -€112 million, compared to -€207 million in the first half of 2016.
Group net financial expenses decreased to €121 million, compared to €150 million in the first half of 2016.
Consolidated net income reached €1,474 million, up by €91 million, in spite of the negative impact of operations in China. Net income, Group share, reached €1,256 million, compared to €1,212 million in the first half of 2016.
Banque PSA Finance reported recurring operating income4 of €312 million, up 5.1% compared to the first half of 2016.
Faurecia recurring operating income amounted to €587 million, an increase of 19.8% compared to the first half of 2016.
The Free Cash Flow of manufacturing and sales companies amounted to €1,116 million, driven by the improved profitability of operations.
Total inventory, including independent dealers, stood at 374,000 vehicles at 30 June 2017, down 25,000 units from end June 2016.
The manufacturing and sales companies’ net financial position at 30 June 2017 was a positive €7,631 million, up €818 million compared to 31 December 2016.
Market outlook: for 2017, the Group expects the automotive market to grow by approximatively 3% in Europe, and 5% in China, Latin America and Russia.
The Push to Pass plan sets the following targets:
– Deliver over 4.5% Automotive recurring operating margin5 on average in 2016-2018, and target over 6% by 2021;
– Deliver 10% Group revenue growth by 20186 vs 2015, and target additional 15% by 20216.
Link to the presentation of 2017 H1 Results