PSA Peugeot Citroen reports return to profits in 2010

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PSA Peugeot Citroen reports return to profits in 2010

Source: Xinhua
[08:48 February 11 2011]
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French automaker PSA Peugeot Citroen announced Wednesday a return to profits in 2010 after being heavily impacted by the global economic crisis.

Peugeot, France's largest automaker, posted a net profit of 1.13 billion euros ($1.54 billion ) in 2010 with a turnover that rose by 15.8 percent to 56.06 billion euros ($ 76.45 billion).

For its automotive division, the French group recorded an operating profit of 621 million euros ($ 846.7 million) in 2010 against a loss of 1.26 billion euros ($ 1.72 billion) in 2009.

Peugeot attributed its strong performance to the success of new models, gains of market share and a recovery in global demand.

"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 400 million euros to 3.7 billion euros ($ 545.4 million dollars to 5.0 billion)," Philippe Varin, CEO of PSA Peugeot Citroen, said in a statement.

"Whilst 2011 is likely to remain challenging in European markets, our global development should continue with the second joint venture in China and our project to enter the Indian market," Varin said.

Dongfeng Peugeot Citroen Automobile, the first joint venture between PSA and Chinese counterpart founded in 1992, has contributed 159 million euros ($ 216.8 million) in net profit of the French group.

Peugeot last July signed an agreement with Chinese automaker Changan Group to establish a second joint venture in China. The agreement still awaits final approval from Chinese authorities.

Varin also announced Peugot's intention to enter the Indian market with commercial and industrial performances under the brand of Peugeot. PSA Peugeot Citroen had failed its first project in India in the 1990s.

After the financial crisis, PSA Peugeot Citroen now turns to focus on emerging markets. Varin stated a year ago that Asia, including Southeast Asia, would be a priority for his group.

For 2011, the French group expected to grow by around 10 percent in China, 4 percent in Latin America and 15 percent in Russia, plus to a higher operating income for the automotive division.