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PARIS, April 26 French carmaker PSA Group
said its first-quarter revenue rose 4.9 percent, as
the first results of a new product offensive helped to overcome
negative currency effects.
Revenue advanced to 13.63 billion euros ($14.92 billion)
from 13 billion a year earlier, the maker of Peugeot, Citroen
and DS cars said on Wednesday. At its core automotive division,
revenue rose a more modest 2.5 percent to 9.02 billion euros.
PSA, which agreed last month to buy European rival Opel from
General Motors, said two existing joint vehicle
programmes would lift its second-half revenue.
The Paris-based carmaker has rebounded from near-bankruptcy
and government-backed bailout in 2014 to a 6 percent automotive
operating margin last year on the strength of cost-cutting, a
pared-down lineup and determined efforts to lift prices.
"We can see the beginning of the success of our product
launches with its first effects on the top line," Chief
Financial Officer Jean-Baptiste de Chatillon said on a
conference call with analysts.
However, Chatillon cautioned that "it will take some time"
to fix PSA's problems in China, where deliveries plunged 16
percent last year and another 46 percent in the first quarter -
compared with a 4.2 percent increase in global sales volume.
The group said earlier this month it will need deeper cuts
and more SUVs to turn the sales slump around. Sales through
PSA's Chinese joint ventures are not consolidated in group
New models, including the Peugeot 3008 mini-SUV and Citroen
C3 hatchback, helped to lift the so-called "product mix" as
customers opted for plusher versions, delivering a 3.7 percent
boost to quarterly revenue. That was offset by a negative 1
percent currency impact, primarily from the weaker British
But pricing contributed a more modest 0.4 percent uplift to
revenue, the company said.
The French carmaker also lifted its full-year market outlook
to a 1 percent expansion in Europe and 2 percent in Latin
America, having previously forecast flat demand in both regions.
($1 = 0.9139 euros)
(Reporting by Laurence Frost, Editing by Dominique Vidalon and