PSA Peugeot Citroen, Europe's second biggest car maker, reported a 22 percent rise in first half operating profit on Wednesday, after cutting costs and reversing a decline in European market share with new models.
The French car maker, which trails European market leader Volkswagen AG, said recurring operating income rose 21.9 percent to 842 million euros ($1.16 billion), thanks to buoyant sales of new models like its top-selling Peugeot 207.
The group reversed a four year decline in its European market share. Its first half market share rose to 14.2 percent from 14 percent a year ago. The turnaround follows a steady drop in market share from 15.8 percent in the first half of 2003.
PSA reported a rise in its first-half operating margin - a key profitability benchmark - to 2.7 percent from 2.4 percent a year ago. Analysts on average expected 2.5 percent.
"This is the first rise (in profit margin) after five years of declines, semester after semester," chief executive Christian Streiff told a news conference. The group has rolled out new models in a major product offensive, including the Peugeot 308 compact, 207 small car and 4007 four-by-four model. It has also introduced the C4 Picasso multi-purpose vehicle and the C-Crosser four-by-four.
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