Peugeot maker PSA makes profit despite pandemic sales slide

PARIS (AP) — The maker of Peugeot and Citroen cars, PSA Group, said yesterday that it made a profit in the first six months of the year even as the coronavirus pandemic caused a deep drop in sales.

The French company, which is in the process of merging with Fiat Chrysler Automobiles, said its first-half profits fell to EUR595 million (USD696 million) from EUR1.83 billion a year earlier as sales dropped 35 per cent, to EUR25.1 billion.

Sales rebounded in July as showrooms re-opened from the pandemic lockdown in many countries and PSA said it still expects to report a profit over the period from 2019 through 2021, with an adjusted operating margin of over 4.5 per cent.

That all depends, however, on the development of the health crisis, with case numbers increasing again in some countries, like Spain, and some countries reimposing tougher limits on public life and business.

“Results of operations and financial condition will depend on future developments, which remain highly uncertain and cannot be accurately predicted at this time,” the company said.

File photo of the logo of French car maker Peugeot. PHOTO: AP