Peugeot maker PSA reaffirms margin goal after first-half sales slide

Peugeot displayed its new car and new technologies at during the Paris Motor Show at Parc des Expositions Porte de Versailles on October 2, 2018 in Paris, France.
Daniel Pier | NurPhoto | NurPhoto | Getty Images

Peugeot maker PSA Group held on to its margin target despite a fall in profitability in the first half of 2020, when the coronavirus pandemic dented sales at the French group.

PSA, which is in the middle of working through a merger agreement with Italy's Fiat Chrysler <FCHA.MI>, is aiming for a "solid rebound" in the second half, Chairman Carlos Tavares said in a statement.

A sales slump at the company deepened in the second quarter, with revenue down 34.5% in the first six months of 2020 to 25.12 billion euros ($29.47 billion), while the automotive division's adjusted operating margins shrank to 3.7% from 8.5% at end-2019.

PSA reiterated a goal for average margins of over 4.5% in the automotive unit for the 2019 to 2021 period, however.

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