Source AP ©

Third-quarter revenue of Peugeot-Citroen rises 12 percent

Third-quarter revenue of French automaker PSA Peugeot-Citroen achieved 12 percent behind strong gains in new vehicle sales, higher prices and an improved product mix.

Peugeot-Citroen said revenues rose to 14.02 billion EUR(US$20.06 billion) in the quarter - above an average estimate of 13.12 billion EUR(US$18.77 billion) of seven analysts polled by Dow Jones Newswires.

Europe's second-largest car maker by revenue after Germany's Volkswagen AG said revenue for the first nine months rose 7.7 percent to 44.84 billion EUR(US$64.16 billion).

The company reaffirmed a target for an operating margin of more than 2 percent in the second half of 2007, saying consolidated sales and revenue in the last quarter of this year are expected to increase from a year earlier in the period.

Revenue of Peugeot-Citroen's automobile division increased by 12 percent in the quarter to 10.96 billion EUR(US$15.68 billion), and by 7.3 percent in the first nine months to 35.13 billion EUR(US$50.27 billion).

New vehicle sales increased 14 percent, Peugeot-Citroen said.

Compared with a year earlier, the third-quarter of 2007 saw a 3 percent improvement in the product mix, and a 1.4 percent increase in prices, the company said.

Peugeot-Citroen reported an 0.8 percent increase in registrations of its Peugeot and Citroen brands in the first nine months, compared to a 0.4 percent rise for the overall European market.

Peugeot-Citroen's third-quarter performance was boosted by a better-than-expected 8.7 percent increase in revenue at Faurecia SA, its car parts subsidiary.

Peugeot-Citroen's share price has risen by 15 percent this year, and on Thursday, the shares closed up 2.2 percent at 57.81 EUR(US$82.72), beating the 1.5 percent rise in the CAC 40 on the Paris stock exchange.