PSA Peugeot Citroen automotive division turns a profit
20 February 2015
Author: Daniel Puddicombe
PSA Peugeot Citroen's automotive division posted an operating profit of ?63 million (£46m) in 2014 compared to a ?1.04 billion loss in 2013, thanks to the group's restructuring of its staff, a reduction in models and operational savings.
The performance from PSA's automotive division helped to stem the company's total losses which reduced from ?2.23bn to ?555m last year.
The group said its global operating income was now ?905m (£667m) in 2014 after a loss of ?364m (£268m) in 2013.
The French group says it is now debt-free and had ?2.2bn (£1.6bn) in operational cash flow last year.
Carlos Tavares, chairman of PSA Peugeot Citroen, said the results are ahead of the group's restructuring plans.
"Our 2014 results show evidence that the process of rebuilding the group's financial fundamentals is underway," said Tavares.
"By generating ?2.2 billion in operating free cash flow during the year, and becoming net debt free, we are ahead of our reconstruction plan."
The group was recently restructured in the UK. Changes include having a single director general across the Peugeot, Citroen and DS brands.
Stéphane Le Guével was appointed as director general and there is a new structure of directors responsible for reporting in to Le Guevel from 1, January this year.
Arnaud Leclerc is now deputy director general of PSA Peugeot Citroen and brand development director for DS.
Neil Moscrop is now brand director for Peugeot and Bek Hassan is brand director for Citroen and DS.
Brand directors will be responsible for the sales & marketing operations of each brand.
Also reporting to Le Guével and responsible for all three group brands is Stuart Hodge, parts and service director and Andrew Didlick, communications, events and partnerships director.
The restructuring is part of the group's 'back in the race' programme, where the group's model line-up is being reduced from 45 vehicles to 26 by 2020.