web hit counter
Published On: Wed, Jul 30th, 2014

Peugeot reports its first quarter profit after three years of loss

Peugeot has reported a profit for the quarter, a result better than analyst forecasts, by cost cutting and introducing new models.

Peugeot reports its first quarter profit after three years of loss

Peugeot, Europe’s second largest auto manufacturer, beat expectations in the first half. Following a three year loss period, it recovered on the strength of cost cuts and the introduction of new models. The biggest rise in the shares of Peugeot in the past over 5 months in Paris trading followed the report of 477 million euro operating income, after a 100 million euro deficit a year earlier. The profit exceeded the average analyst estimates of 358 million euros.

Peugeot, not being able to generate profit since the first half of 2011, collaborated with Chinese Dongfeng Motor Corp., to expand business outside Europe where demand is growing after a 20 year low. Peugeot’s losses were due to European market saturation. Now it is taking measures: closing a factory by Paris and concentrating on new vehicles which bring more profits.

Peugeot stock is going to catch the attention of numerous portfolio managers. The intraday gain for Peugeot was 8.5 percent, the most massive gain since February. This year the company stock has soared by 44 percent, which brought the company valuation to 8.8 billion euros.

The auto manufacturer’s cash flow for the first half of the year was 1.67 billion euros. The company reduced cars at dealer lots by 30,400. The rigorous control of the inventory yielded working capital improvement of 1 billion euro. The forecast for the car market growth in Europe was pinned at 3 percent.

Peugeot’s CEO Carlos Tavares informed analysts the company considers the situation in Europe unstable, which makes it cautious. Uncertainty on emerging markets is adding to the slow recovery of demand in France. Furthermore, Peugeot is expecting a 10 percent decline on the Russian market, and a 7 percent drop in Latin America auto sales. But the auto maker stated again its 2016 goals of reaching positive operational cash flow, and for 2018, targeting a 2 percent of sales profit.

The collaboration project is financed partly by stock sale in the beginning of this year, with Dongfeng and France the investors with 14 percent stakes for each. In April CEO Tavares revealed a plan for scaling back the Peugeot lineup to 26 models by 2022, compared to currently 45 vehicles, and transforming the luxury DS, formerly belonging to the Citroen unit for the midmarket, into a premium brand. Peugeot also plans further expansion into China, in addition to its current three factories jointly operated with Dongfeng.

Cutting Peugeot spending has included reducing French workers by 17 percent. Wages are expected to drop to under 14.5 percent of revenue for 2014, compared to last year’s 15.1 percent. The first half revenue went down from 27.7 billion to 27.6 billion euro, impacted by foreign exchange. There was a delivery rise, due to the Peugeot 308 hatchback demand. Automotive unit earnings reached 7 million euro, after a 538 million euro operating loss a year earlier. Savings reached 254 million euro, and capacity use soared to 84 percent, up from 72 percent for 2013. That was the division’s first profit since 2010.

About the Author


- ProfitEase.com is a global financial portal that provides news, analysis, economic calendars, streaming quotes, technical studies and other resources about the global markets. The materials on the website cover a variety of fields including: economics and politics; monetary policy; forex, CFD and derivatives trading; commodity markets; bond markets.

Displaying 21 Comments
Have Your Say
  1. Well I truly enjoyed studying it. This article procured by you is very effective for correct planning.
    Louis Vuitton pas cher http://www.edicions1984.cat/bd/favicon/like.cfm

  2. ロレックス デイトナコピー時計:http://www.canot-kayak.qc.ca/rolexwatch.html

  3. discount hermes purses hermes dinnerware replica cheap fwqumvhsc

  4. For newest information you have to visit internet and on the web I found this
    web site as a finest web site for most recent updates.

  5. Hello! I just would like to give an enormous thumbs up for the fantastic information you’ve here on this post. I might be coming back to your blog for much more soon.
    wholesale jerseys http://playerforge.com/ahflsfa/blog/324216/

  6. I discovered your blog website on google and check some of your early posts. Continue to maintain up the particularly fantastic operate. I just additional up your RSS feed to my MSN News Reader. Seeking forward to reading additional from you later on!
    whoesale jerseys china http://www.kiwibox.com/grsjfgdr/blog/entry/117068213/an-examination-of-vital-components-of-cheap-nfl-jerseys/?pPage=0

  7. This seriously answered my dilemma, thank you!
    wholesale jerseys http://playerforge.com/ahflsfa/blog/324216/

  8. An impressive share, I just given this onto a colleague who was doing just a little analysis on this. And he in fact purchased me breakfast due to the fact I identified it for him.. smile. So let me reword that: Thnx for the treat! But yeah Thnkx for spending the time to discuss this, I feel strongly about it and really like reading even more on this topic. If possible, as you grow to be expertise, would you mind updating your blog with more details? It is highly helpful for me. Large thumb up for this weblog post!
    jordans outlet http://mytemptation.sredi-svoih.ru/member/blog_post_view.php?postId=75279

  9. Oh my goodness! an awesome write-up dude. Thank you However I’m experiencing issue with ur rss . Don’t know why Unable to subscribe to it. Is there everyone getting identical rss difficulty? Everyone who knows kindly respond. Thnkx
    cheap sneakers http://creativemanufacturing.net/profiles/blogs/how-to-look-good-in-skirts

  10. There is certainly noticeably a bundle to understand about this. I assume you made specific nice points in functions also.
    jordans shoes http://www.samengelukkiger.nl/member/blog_post_view.php?postId=97266

  11. I feel like a lightweight here also but I think your exercise routine should work for you and you alone to get the best results. We have to realize everyone is different as far as their time goes and try to fit in as much exercise as we can. I aim for 60 minutes a day at least 5 days a week. I walk/jog on the treadmill, walk outside, jump rope, stationary bike and hula hoop for cardio. It depends on what I feel like doing. I also do strength training with free weights or weight machine for 30 minutes every other day. I really like some of the exercise routines on this site and throw them in for variety. I hope to purchase an elliptical machine soon.how to build a gt snow racer

  12. There are actually undoubtedly lots of details like that to take into consideration. That is a fantastic point to bring up. I offer the thoughts above as general inspiration but clearly there are actually questions like the 1 you bring up where one of the most crucial factor will probably be working in honest superior faith. I don?t know if perfect practices have emerged around things like that, but I’m positive that your job is clearly identified as a fair game. Both boys and girls feel the impact of just a moment’s pleasure, for the rest of their lives.
    whoesale jerseys china http://libriotheque.org/?q=node/22613

  13. Immediately after study several of the blog posts on your webpage now, and I really like your way of blogging. I bookmarked it to my bookmark web-site list and will likely be checking back soon. Pls check out my web web site too and let me know what you believe.
    jerseys wholesale http://ahflsfa.2337246.n4.nabble.com/Customize-Your-Suit-With-English-Bespoke-Tailors-td2.html

  14. This is the suitable weblog for any individual who desires to learn about this topic. You realize so a lot its pretty much tough to argue with you (not that I essentially would want?-HaHa). You unquestionably put a new spin on a subject thats been written about for years. Very good stuff, just fantastic!
    wholesale jerseys http://gjslgds.2335653.n4.nabble.com/Cheap-Mlb-Sports-Jerseys-You-Set-Up-A-Honest-Online-Businessperson-td2.html

  15. hermes replica clothes earrings replica hermes handbags china exact cggorutoa

  16. GolfMichael Jordanie est un golfeur passionn茅 et a accueilli un organisme de bienfaisance c茅l茅brit茅 tournoi sur invitation de golf pour les 11 derni猫res ann茅es.

  17. Aw, this was a truly nice post. In concept I would like to put in writing like this in addition – taking time and actual effort to create a pretty great article?- but what can I say?- I procrastinate alot and by no means appear to obtain something done.
    jordans free shipping http://www.facecool.com/profiles/blogs/7-the-essence-of-having-a-fly-fishing-reels-in-fishing-activity

  18. You can find some intriguing points in time in this write-up but I do not know if I see all of them center to heart. There’s some validity but I will take hold opinion until I look into it further. Excellent post , thanks and we want more! Added to FeedBurner too
    jordans outlet http://www.jordan13cheap.com

  19. Soon after study several of the blog posts on your web site now, and I truly like your way of blogging. I bookmarked it to my bookmark website list and might be checking back soon. Pls have a look at my web site at the same time and let me know what you think.
    jordans free shipping http://www.facecool.com/profiles/blogs/7-the-essence-of-having-a-fly-fishing-reels-in-fishing-activity

  20. I’m impressed, I should say. Actually rarely do I encounter a blog that’s both educative and entertaining, and let me tell you, you might have hit the nail on the head. Your notion is outstanding; the issue is some thing that not enough persons are speaking intelligently about. I am rather happy that I stumbled across this in my search for something relating to this.
    cheap jordans http://gofishtalk.com/profiles/blogs/what-are-the-advantages-of-a-cinder-block-garden

  21. The next time I read a weblog, I hope that it doesnt disappoint me as considerably as this one. I mean, I know it was my option to read, but I actually thought youd have something fascinating to say. All I hear can be a bunch of whining about something that you simply could fix in the event you werent too busy seeking for attention.
    cheap jordans http://www.aduun.com/member/blog_post_view.php?postId=38938

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>


Never Miss A Post Subscribe For The Latest Updates And Receive News, Forecasts & Analysis for FREE!