PSA nearly doubles profits as it announces first dividend in six years ahead of Opel takeover
As PSA's proposed takeover of General Motors' European business looms, the French maker of Peugeot and Citroen announced net profit nearly doubled last year.
Read more: Unite plans to meet PSA on Friday for clarity over growing job concerns
The figures
The company posted better-than-expected full-year results and also announced it will pay shareholders the first dividend in six years after a rosy outlook for 2017.
Net income rose 92 per cent to €1.73bn while recurring operating income increased 18 per cent to €3.2bn after the firm slashed costs.
It generated €2.7bn in cash last year, while the firm said it now has a cash position of €6.8bn as of 31 December, and will "deploy this cash to make profitable investments" in the interests of its shareholders. Part of it will go towards paying a €0.48 per share dividend.
It expects a "stable automotive market" in Europe, Latin America and Russia for the year ahead, and five per cent growth in China.
Read more: Now German government officials are meeting with GM and PSA
Why it's interesting
The French car firm is in advanced talks to buy the European operations – including Vauxhall – of GM, and there has been a flurry of activity as politicians and unions scramble to get details of what the deal would entail.
PSA boss Carlos Tavares has told government and unions he is confident in securing jobs and delivering a turnaround similar to the French carmaker's resurgence, since it was bailed out by the French state and Chinese firm Dongfeng Motor Co three years ago.
Unite boss Len McCluskey is set to meet Tavares tomorrow to raise his concerns and press the importance of the UK plants, which analysts have said look vulnerable amid any prospective cost-cutting.
Today, the PSA boss said the acquisition would soon create savings and value, adding that picking up the Vauxhall brand should bring in new customers reluctant to purchase French cars.
What the company said
Tavares, chairman of PSA group managing board, said:
These results demonstrate our ability to consistently deliver an excellent performance in an adverse environment.
They are the outcome of the group’s operating efficiency improvement and our competitive teams’ focus on the execution of the Push to Pass plan.
Day after day, the group is building the conditions for profitable and sustainable growth, reinforced by the success of the first launches in its product offensive.
Read more: Peugeot-maker PSA confirms it's in talks to buy GM's Opel