French carmaker PSA Peugeot Citroën yesterday shrugged off concerns about an ageing model line-up with a better than expected first-half performance.
Europe's second largest carmaker said net profits had reached €681m (£450m) - down on the €869m recorded in the first half of 2003 but ahead of analysts' forecasts of €624m.
PSA hopes new models such as the Peugeot 1007 city car and Citroën C4 will provide a second-half boost. PSA is forecasting its full-year performance will just match that of last year but analysts believe that might be raised. Chairman Jean-Martin Folz said there were "positive trends", including a continuing recovery in the market in western Europe, adding that the group will decide in October whether to revise its guidance upwards.
One concern is the price of raw materials and Mr Folz said group operating profits would take an €80m hit over the full year.
