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PARIS (Reuters) – The Peugeot PSA Group maintained its margin target despite a drop in profitability in the first part of 2020, when the coronavirus pandemic affected sales of the French group.
PSA, which has a merger agreement with Italy’s Fiat Chrysler, points to a “solid uptick” at this time of year, President Carlos Tavares said in a statement.
The company’s sales declined at the time of the quarter, with profits falling from 34.5% in the first six months of 2020 to 25.12 billion euros ($29.47 billion), while adjusted operating margins in the automotive department fell to 3.7% from 8.5% at the end. 2019.
PSA, however, reiterated an average margin target above 4.5% in the automotive unit for 2019 to 2021.
(Report through Sarah White and Gilles Guillaume; Editing through Kim Coghill)