Mix, Sales Improvement Point To Higher Profits In 2011, 2012
PSA Peugeot-Citroen improved its first quarter sales and investors were relieved to hear that disruptions from the Japanese earthquake were not as severe as feared.
According to Commerzbank, Peugeot’s estimate of a negative sales loss impact of €150 million in the first half because of the earthquake ramifications was widely anticipated by investors.
Peugeot-Citroen sales rose to €15.4 billion in the first quarter from €14 billion in the same period of 2010, helped by the new Citroen DS3.
Royal Bank of Scotland auto analyst Jose Asumendi said Peugeot-Citroen’s sales indicated an improved pricing scenario responding to strong product momentum.
“This, we believe, will likely offset any raw material headwinds,” Asumendi said.
He recommended investors buy Peugeot Citroen shares.
“Additionally, we see product mix improving through 2011 as more C and D segment vehicles are sold. These changes are reflected in our forecasts – we revise our margin forecast for 2011 from 3.6 per cent to 4.5 per cent and for 2012 from 4.1 per cent to 5.1 per cent,” Asumendi said.
Neil Winton – May 1, 2011
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