Peugeot Citroen says sales jump in first quarter
French auto-maker PSA Peugeot Citroen posted on Wednesday a jump in first-quarter sales which the company said would boost its operating profit for the first half of the year.
The auto-maker, which lost 1.16 billion euros last year, also said that it would not pay a dividend to shareholders for 2009 in order to allocate financial resources to its product plan and the group's development.
Turnover rose to 14 billion euros (18.7 billion dollars) in the first three months of the year, an increase of 27.5 percent compared to the equivalent figure last year, PSA said in an earnings statement.
The company raised its outlook, saying it now expected "significant recurring operating income for first-half 2010, including a positive contribution from the Automotive Division."
PSA repeated its view that the European auto market would fall by nine percent in 2010 but that it expected its market share to keep rising.
"I am very confident that our sales and marketing momentum and the deployment of the performance plan will enable the Group to limit the impact of a business environment that risks being difficult in Europe in the second half," PSA board chairman Philippe Varin said in the earnings statement.
© 2010 AFP