Peugeot Citroen reports demand in new markets

FRENCH carmaker Peugeot Citroen yesterday said strong demand in emerging markets helped it offset supply chain problems in Japan in the first-quarter, leading to a better-than-expected 10.2 per cent rise in revenue.

The group stuck to its 2011 objectives yesterday but said there would be a likely hit of up to €150m (£132.7m) to automotive recurring operating profit in the first-half as a result of the Japanese earthquake and tsunami.

“Output in Japan has yet to return to normal and the group is carefully tracking the situation,” Peugeot said in its quarterly revenue statement.

The impact on profit was partly due to delivery problems at parts supplier Hitachi and partly from the cost of adjusting its supply chain, it said.

Peugeot said it had “reduced visibility” on second-quarter results, but finance chief Frederic Saint Geours later said it was not expecting new production problems linked to Japan.

First-quarter group revenue rose to €15.41bn, beating the average estimate of €14.9bn in a poll of eight analysts. This was the final quarter to benefit from a government programme to give bonuses to car owners who traded in their old models.