Peugeot manufacturer PSA Group stated profitability reached fresh peaks last year. However, the French agency marked a gloomy scope for automobile sales in regions such as Europe this year as it pursues its merger with Fiat Chrysler.
PSA, which makes vehicles under the Citroen and DS brands, has trimmed costs in areas resembling purchasing as it integrated its purchase of Opel and Vauxhall, boosting operating margins to a record 8.5% in 2019.
It offset a drop in car sales by selling dearer SUV models, with launches along with the Citroen C5 Aircross, helping to boost revenues by a higher-than-anticipated 1% to 74.7 billion euros.
That has helped it stand out in a car industry where some competitors, along with France’s Renault, have struggled with skidding revenues and profits, amid a broader slowdown in demand.
PSA’s net revenue increased 13.2% to a record 3.2 billion euros, and the corporate increased its dividend against last year’s results to 1.23 euros a share, up 58% from 2018 levels.
Fiat also recorded extra upbeat results than most earlier in February. PSA and Fiat reached a deal in December to develop the world’s fourth-biggest car manufacturer, in a bid to better cope with market turbulence and the cost of making less-polluting automobiles.
The two still face headwinds this year, along with as the coronavirus epidemic in China paralyzes production in the nation and hits car manufacturers’ supply network and with PSA forecasting a 3% crunch in Europe’s car sector this year.
PSA had already suffered a total of 700 million euros in losses and writedowns in China last year, where its automobile sales have dipped, and where it’s exiting a joint venture with China’s Chongqing Changan Automobile.