PSA reported a full-year profit and raised its three-year savings target
By Andrew, 13 Feb, 2011. 0 Comments
2011 Peugeot 508
PSA/Peugeot said in a recent statement that its net income was EUR1.13 billion ($1.54 billion) in 2010, compared with a EUR1.16 billion loss a year earlier. The company reported a full-year profit and raised its three-year savings target after a sales recovery in rising markets helped earnings. Analysts expected net income of EUR970 million, the average of 18 estimates compiled by Bloomberg. CEO Philippe Varin said the success of the company’s performance plan for the auto division has allowed it to “comfortably exceed its initial targets.
” PSA said new models like the Peugeot 3008 crossover and Citroen DS3 upscale subcompact helped provide 16 percent growth in revenue to EUR56 billion. The company raised the target for its savings plan running from 2010 through 2012 to EUR3.7 billion from 3.3 billion euros.
Introduced by Varin in 2009, the strategy initially aimed to generate the earnings gain from higher sales, shorter model-development times, a 20 percent manufacturing productivity gain and EUR400 million in operating-cost savings. Earnings before interest and taxes, and excluding one-time gains or costs, increased to EUR1.8 billion, for a 3.2 percent operating margin, compared with a EUR689 million loss a year earlier. [via autonews - sub. required]
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