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Groupe PSA FY17 Profit Climbs, Sees Growth Ahead; Stock Up

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Shares of Groupe PSA (PEUGF.PK) were gaining around 6 percent in the morning trading in Paris after the owner of Peugeot and Opel brands reported Thursday higher profit in its fiscal 2017 reflecting strong results in Peugeot Citroën DS division, despite a loss at Opel Vauxhall.

Looking ahead, for 2018, the French automaker anticipates a stable automotive market in Europe, and growth of 4 percent in Latin America, 10 percent in Russia and 2 percent in China.

Groupe PSA, excluding Opel Vauxhall, is expected to deliver 10 percent Group revenue growth by 2018 compared to 2015, and target additional 15 percent by 2021. It also expects to deliver over 4.5 percent Automotive recurring operating margin on average in 2016-2018, and target over 6 percent by 2021.

Carlos Tavares, Chairman of Groupe PSA Managing Board said, "Peugeot Citroën DS outstanding results, making significant progress for the 4th year in a row, are the proof of our ability to deliver a profitable and sustainable growth."

For the year 2017, net income, Group share, increased 11.5 percent to 1.929 billion euros from 1.730 billion euros in 2016. Earnings per share were 2.05 euros, higher than 1.93 euros a year ago.

Group recurring operating income amounted to 3.99 billion euros, a growth of 23.4 percent from last year's 3.24 billion euros. Among divisions, Peugeot Citroën DS or PCD Automotive recurring operating income grew 33.3 percent, while Opel Vauxhall or OV Automotive recorded a loss.

Group recurring operating margin excluding OV stood at 7.1 percent, higher than 6 percent last year. Group recurring operating margin with OV was at 6.1 percent.

In the year, group revenue amounted to 65.21 billion euros, up 20.7 percent from 54.03 billion euros last year. At constant 2015 exchange rates and perimeter, 2017 Group cumulated revenue was up 12.9 percent.

PCD Automotive division revenue went up 9.9 percent from last year to 40.74 billion euros, mainly driven by the product mix and the volume and country mix improvement linked to the worldwide success of the Group's new models, despite negative impact of exchange rates. OV Automotive division revenue amounted to 7.24 billion euros in 20172

In the year, group sales climbed 15.4 percent from last year to 3.63 million vehicles.

Further, the company announced a dividend of 0.53 euros per share to be submitted for approval at the next Shareholders' Meeting with payment date on May 4.

In Paris, Peugeot shares were trading at 19.70 euros, up 5.80 percent.

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