Peugeot's auto division returns to profit


PSA Peugeot Citroen narrowed its first-half net loss and posted the first positive contribution from its core auto division in three years, as the French carmaker's recovery plan began to show early results.

Paris-based Peugeot on Wednesday reiterated its recovery goals for 2014 and beyond, after reducing the net loss to 114 million euros ($153 million) in January-June from 471 million a year earlier.

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Operating cash flow also surged to 1.667 billion euros before restructuring, from 203 million a year earlier, as Peugeot slashed vehicle inventories to free up working capital.

"Our recovery plan is already producing results on all fronts," Chief Financial Officer Jean Baptiste de Chatillon told reporters on a call, adding that pricing had also improved.

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Despite currency headwinds, the core auto division returned to a 7 million euro operating profit - its first positive result since the first six months of 2011 - from a year-earlier loss of 538 million euros.

Revenue fell 0.4 percent to 27.616 billion euros in the first half as emerging-market currencies continued their slide against the euro.