Peugeot reports 82.9 percent slide in earnings

7th February 2007, Comments 0 comments

PARIS, Feb 7, 2007 (AFP) - French automaker PSA Peugeot Citroen reported an 82.9 percent slide in 2006 net earnings to 176 million euros (229 million dollars) from 2005 and said it anticipated continued stiff competition this year.

PARIS, Feb 7, 2007 (AFP) - French automaker PSA Peugeot Citroen reported an 82.9 percent slide in 2006 net earnings to 176 million euros (229 million dollars) from 2005 and said it anticipated continued stiff competition this year.

 But it also said it expected increased sales volumes in Europe, reflecting the good performance of models introduced in 2006.

Peugeot shares were showing a gain of 2.01 percent to 53.20 euros in early trading on a Paris market that was 0.14 percent stronger.

The company on Tuesday announced a shake-up in its management structure after its new chief executive, Christian Streiff, took command of the group.

Streiff announced a reorganisation of the management functions and created an "executive committee" to include the management board plus five other executives.

The new committee will assume the executive decision-making powers of the company.

"This new streamlined, efficient organisation will ensure that the necessary decisions are taken without delay to swiftly restore our group to profitable growth," Streiff said in a statement.

Peugeot Citroen's operating profit last year fell 42.3 percent to 1.119 billion euros from sales that edged up 0.6 percent to 56.594 billion euros.

Group operating margin slipped to 2.0 percent of sales from 3.4 percent in 2005.

Peugeot also said in a statemet it expected "stability in the European market (in 2007) in a highly competitive environment."

Copyright AFP

Subject: French news, Peugeot

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