PSA Peugeot Citroen has booked a solid almost EUR1.9bn turnaround in operating income, making EUR621m in 2010 compared with a 2009 loss of EUR1,257m.
Sales rose 15.8 % to EUR56.1bn (10.2% like for like) helped by a EUR2.7bn boost from the acquisition of Emcon and Plastal, new vehicle models, market share gains and improved demand worldwide.
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Chairman Philippe Varin said: “We are pleased to announce a substantial recovery in profitability in 2010 for all our businesses.
“The success of our automotive performance plan has delivered results significantly ahead of our target and allows us to increase our 2010-2012 objective by EUR400m to EUR3.7bn.
“Our solid financial situation will enable us to reimburse fully the remaining EUR2bn of the French state loan.”
PSA said the European market is expected to be flat in 2011 with growth in China, Latin America and Russia expected at around 10%, 4% and 15% respectively.
Operating income is expected to rise to EUR1.1bn which should offset significant increases in raw material and other input costs.
Net income was EUR1.134bn, a major swing after the loss of EUR1.161 in 2009.
Automotive division sales rose 8.2% to EUR41,405bn in 2010.
Operating income was EUR621m versus EUR1.257bn a year earlier.
But operating income in the second half was EUR96m in the context of less favourable markets in Europe, a very competitive pricing environment and the negative impact of raw materials.
The Dongfeng Peugeot Citroën Automobile joint venture will pay a dividend for the first time on 2010 earnings. PSA’s 50% share of net income was EUR159m versus EUR57m in 2009
PSA said it would repay the French state EUR1bn by the end of February and EUR1bn by the end of April.
Healthy turnaround at Faurecia too
