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PSA sales revenue down 0.4% in 2003 after currency effects

PSA Peugeot Citroën's 2003 results “demonstrated firm resilience in a difficult environment shaped by lower demand in Europe, particularly in France, and by the highly negative impact of the stronger euro,” says the group's financial results announcement today.

Peugeot and Citroën global vehicle sales came to 3,286,100 units. Consolidated sales by value for 2003 totalled €54,238 million; a 0.4% decline compared with 2002 was entirely due to the fall in all PSA's other operating currencies against the euro; excluding the currency effect, consolidated sales rose 1.5%.

PSA's consolidated operating margin stood at €2,195 million, representing 4% of sales, down from €2,913 million in 2002. Net income amounted to €1,497 million, against €1,690 million in 2002.

PSA's Automobile Division sales dropped 0.6% to €43,684 million at current exchange rates, but rose 1% at constant rates. Operating margin on vehicle sales dropped sharply to €1,281 million from €2,183 million in 2002, primarily due to the stronger euro and a weaker sales mix, caused mainly by the sharp drop in the French market.

Banque PSA Finance reported revenues of €1,724 million, up 1.4% over 2002. As of December 31, 2003, the PSA group finance companies' total outstanding loans stood at €19.6 billion, 4.8% higher than a year earlier.

PSA Peugeot Citroen says neither its market environment nor the effect of the euro exchange rate are unlikely to improve during the first half of this year. It believes the second half should see new model launches, notably of the 407, having a significant impact on market share and margins. All in all, PSA expects 2004 will be a year of transition, “paving the way for a return to more resounding growth in 2005”.

Analysis of PSA Peugeot Citroen's UK operations is not included in group financial results.

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