PSA Peugeot Citroen has booked first half operating income of EUR1,137m compared with a EUR826m loss a year ago on revenue up just over 20%.
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Automotive operating income recovered from EUR904m in the red in H1 2009 to EUR525m.
Net income was EUR680m, the automaker said, versus a EUR962m loss for the first half of 2009.
Chairman Philippe Varin said: “The group is now well on track to rebuilding sustainable profitability with strong first half results driven by market share gains and the benefits of the performance plan. The second joint venture in China represents a major step towards growing our business outside Europe. We are now confident that we will generate half of our vehicle sales outside Europe by 2015, compared to one third at the beginning of the current year.”
While the European market is expected to be down 7% this year, double digit growth is expected in China, and high single digit growth in Latin America.
“Despite more difficult market conditions for the remainder of the year in Europe, as well as the usual seasonality, the automotive division is expected to be close to break even in the second half,” PSA said.
“In this context, the group expects to deliver a recurring operating income for the full year of around EUR1.5bn.”
H1 2010 revenue increased 20.8% to EUR28,394m and 15.5% like for like. Parts unit Faurecia recently acquired Emcon and Plastal which brought in EUR1 277m of additional revenue.
Automotive revenues rose 13.5% to EUR21,174m.
The accelerated performance plan at Chinese joint venture DongFeng Peugeot Citroën Automobile delivered a major increase in both sales and earnings; volume up 50% to 176,000 units, while net income was EUR97m.
Rival Volkswagen recently posted first half recurring operating income of EUR1.137bn compared with a recurring operating loss of EUR826m in H1 2009.
First-half operating income reached EUR1.068bn, up from a EUR1.332bn operating loss the previous year.
Net income was 680m euros, up from a 962m-euro net loss a year ago.
Renault is due to report half-year results on Friday.
PSA earlier this month reported a rise in first-half vehicle sales, boosted by new model launches and strong growth in China.
