Peugeot Citroen reports full year profit

Peugeot - Return to Full Year Profitability in 2011

Peugeot – Return to Full Year Profitability in 2011

Following strong growth in 2010, French carmaker Peugeot Citroen has returned to full year profitability. Revenue for the year rose to €56 billion (£47.6 billion, $76.5 billion), a jump of 15.8% over last year, “driven by successful new models, market share gains and improved demand worldwide”, the company said in a statement.

Net profit for 2010 was reported at €1.13 billion, compared to a loss of €1.16 billion reported in 2009.

The company said it will pursue its second joint-venture in China and will also re-enter India in 2011.

Commending the company’s performance, Chairman Philippe Varin said the company’s performance was “significantly ahead” of forecast.

Peugeot had received a loan of €3 billion from the French government during the peak of financial crisis in 2009, which helped it stay afloat when carmakers globally were struggling due to lower demand.

The company has managed to repay €1 billion to the French government in September 2010. Peugeot will repay the remaining €2 billion, given the “solid financial situation” of the company, said Mr. Varin.

Peugeot said it expected its operations in the emerging markets to grow substantially with Russia expected to grow by 15%, China by 10% and Latin America by 4%. It expects demand from Europe to remain flat in 2011.

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