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Peugeot 3008 Expected To Boost PSA Profit

Peugeot 3008 Expected To Boost PSA Profit.

“The new Peugeot 3008 could be a margin game changer”

PSA Group will continue to report strong profits in 2017, boosted by big margins from Peugeot 3008 sales, according to Barclays Equity Research.

In 2016, PSA said global sales rose to 3.14 million vehicles from 2.97 million the previous year, in a initial statement which didn’t refer to profits.

According to Barclays Equity Research operating profit margin for the company was 6.1 per cent in 2016 thanks to a high level of cost savings, and the Peugeot 3008.

“In 2017, the company should be able to maintain €500 million of savings and strongly benefit from the new range of SUVs. We continue to see more upside from here and believe the positive equity story isn’t fully factored in yet,” said Barclays analyst Alexis Albert.

“PSA doesn’t disclose margin by brand but we believe the Peugeot brand generates near-premium margins at 8 per cent (in 2016),” Albert said.

“The new Peugeot 3008 could be a margin game changer. We estimate the model to generate 9/11 per cent of auto sales on a full year basis and 18/22 per cent of profit with an operating margin of around 12 per cent average. The new Peugeot SUV has made a very strong start and should be a strong profit driver for the company,” Albert said.   

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