Peugeot shares are sharply higher Tuesday, after the French-based car manufacturing group reported expectation-beating profits in the first half of 2018. The gains come as its Peugeot SUV range proved popular, while the PSA group also delivered a notable turnaround in recent acquisition, Opel-Vauxhall.
By 1230 BST, Peugeot shares were 10.77% higher at €22.63. The stock has been broadly positive in recent weeks.
Peugeot earnings details
Peugeot parent company PSA Group, reported a 40.1% jump in total group revenues to €38.6 billion in H1 2018, compared with the same period a year earlier. Meanwhile, it also said its total recurring group operating profit rose by close to 50% to €3.02 billion, for a 7.8% margin.
Peugeot’s net profit rose to €1.48 billion euros, up from €1.26 billion a year earlier.
“The Group demonstrates since 2014 its recurring ability to level up global profitability, efficiency and volumes, despite strong headwinds,” said PSA Group’s chairman of the board, Carlos Tavares.
“Opel Vauxhall teams start to deliver good results to build the New Opel Vauxhall and are eager to unleash further potential. Our agility and strong focus on execution remain a strong asset to reach our targets,” he added.
These positive earnings results follow details published earlier this month that the PSA group had sold 2.18 million vehicles in the first half of 2018, up from 1.58 million in the first half of 2017.
Amid that upbeat H1 performance, Peugeot also said that it continues to expect a “stable automotive market in Europe, and growth of 4% in Latin America, 10% in Russia and 2% in China.”
Its target remains unchanged and include:
- The delivery of over 4.5% automotive recurring operating margin in the 2016-2018 period.
- To deliver a 10% Group revenue growth by 2018 vs 2015.
- To target further revenue growth of 15% by 2021.