PSA sales resist slowdown in third quarter as revenue rises

French carmaker PSA said Wednesday healthy demand for upmarket models helped it resist a gloomy automaker environment as the stable comprising Peugeot, Citroen, DS, Opel and Vauxhall) saw third quarter sales rise 1% to €15.6-billion.

The rise, in line with analyst forecasts, came despite a 5.9% drop in overall sales to 674 000 units.

July-September sales in the group's automotive division crept up 0.1% to €11.8-billion, below a forecast of €12.15-billion. But PSA held the line in view of a global recession afflicting the sector to which currency swings added further negative impact.

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Although notably strong sales of SUVs lifted its showing as PSA hailed a "strong product mix" which advanced 4.4 percent on demand for recent launches such as the Citroen C5 Aircross sports utility vehicle, there was bad news from China, where consolidated sales collapsed by almost half.

Sales to partners also fell, by 3.2%.

Group sales over the first nine months of the year were off 0.2% at €53.9-billion as sales in developing markets stutter for carmakers as a whole. The industry also faces strict environmental regulatory changes including tough emissions targets which will require major investment in new and cleaner technology.

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PSA is focusing overwhelmingly on Europe, accounting for 90% of global volumes, after it withdrew from Iran last year in the fallout from US sanctions against Tehran.

Regarding market outlook for 2019, the group said it anticipates a 1% decrease of the automotive market in Europe, a 5% fall in Latin America, a 7% drop in China and a 2% slip for Russia, where it had foreseen a rise previously.

PSA's performance help up compared to compatriot and rival Renault, which last week unveiled a drop in its revenue targets after a 1.6 fall in third quarter sales to €11.3-billion.

PSA said it still expects to deliver an operating margin of above 4.5% on automotive sales across 2019-2021.