Peugeot increases profits in 2007

PSA Peugeot Citroen has posted a five fold profit increase of €885 million euros (£656m), in comparison to 2006 profits of €183m (£198m).

Revenue increased by 8.3% to €29.8 billion (£22.1bn) and net income rose to €393 million (£291.3m) in 2007, compared with a year-earlier loss of €123m (£91.2).

Peugeot said sales of its 207 and Citroen C4 Picasso helped halt a drop in sales for Western Europe.

Peugeot said the results were down to the positive effects of its 2010 competitiveness program.

Christian Strieff, PSA chief executive, unveiled the ambitious restructuring plans last year, which aims to double operating margins, cut costs by 30% and roll out 53 new products before 2010.