PARIS (Bloomberg) -- PSA/Peugeot-Citroen reported a full-year profit and raised its three-year savings target after a sales recovery in emerging markets helped earnings.
Net income was 1.13 billion euros ($1.54 billion) compared with a 1.16 billion-euro loss a year earlier, the company said in an e-mailed statement Wednesday.
Analysts expected net income of 970 million euros, the average of 18 estimates compiled by Bloomberg.
“The success of our performance plan for the auto division has allowed us to comfortably exceed our initial targets,” CEO Philippe Varin said in the statement.
New models such as the Peugeot 3008 crossover and Citroen DS3 upscale subcompact helped provide 16 percent growth in revenue to 56 billion euros, the carmaker said.
Earnings before interest and taxes, and excluding one-time gains or costs, rose to 1.8 billion euros, for a 3.2 percent operating margin, compared with a 689 million-euro loss a year earlier.
PSA raised the target for its savings plan running from 2010 through 2012 to 3.7 billion euros from 3.3 billion euros.
The strategy, introduced by Varin in 2009, initially aimed to generate the earnings gain from higher sales, shorter model- development times, a 20 percent manufacturing productivity gain and 400 million euros in operating-cost savings.
The CEO forecast in July that 2010 operating profit would total 1.5 billion euros.