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Porsche, Peugeot rev ahead
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February 21, 2001: 9:54 a.m. ET
European automakers post strong earnings thanks to boom in exports
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LONDON (CNN) - Two European automakers posted stellar earnings on Wednesday, as booming exports bailed out lacklustre domestic markets.
France's PSA Peugeot-Citroen said net profit surged 80 percent to  1.3 billion ($1.2 billion) in 2000, while sportscar maker Porsche announced first-half pretax profit rose 19 percent to 273 million marks ($127.3 million).
The strong results come amid softening car sales in Europe, down almost 2 percent last year. In Germany, the biggest auto market, sales fell 10 percent.
"Automakers were able beat the mild downturn in Europe by exporting more vehicles," Philipp Rosengarten, an analyst at auto consultant DRI , told CNN.com. "Worldwide sales were up 2 percent as emerging markets rebounded from an earlier downturn in 1999."
Germany's Volkswagen said on Tuesday pretax profit rose 66 percent as it sold more vehicles in North America, cut costs and benefited from a falling euro, which makes exports a lot cheaper.
Peugeot benefited from the introduction of a new model, the 206 small car. Porsche hopes its luxury image will insulate it against a downturn in the United States.
Germany's Porsche and Peugeot also set out ambitious targets for the year ahead. Peugeot set a sales target for 2001 of models. By 2004, Peugeot said it was aiming to reach annual sales of 3.5 million units.
The company, which has seen its shares surge to record levels over the past month, hitting 283, also said it would propose a six-for-one stock split and a near-doubling of its 2000 annual dividend to 5 from 2.7 in 1999.
"The results are in line with consensus and I think the company is showing itself to be very positive going forward," Jim Wright, analyst at Lehman Brothers, told Reuters.
"The markets will be reassured that the company does not view this as the cyclical peak and the stock split and dividend show that they are doing a lot for shareholders."
Porsche reiterated its positive outlook for the current financial year and revised upwards its first-half sales and earnings figures.
The Stuttgart-based group said it expects profit for the year ending July 31, 2001, to at least match the previous year's level and also expects a clear rise in full-year revenues.
First half pretax profit increased 19.4 percent to 273.3 million marks ($127.3 million), while sales grew 15.9 percent to 3.4 billion marks.
The family-controlled firm estimates sales of about 50,000 models through July, though analysts said it could sell nearer 52,000 vehicles, which would represent a 7 percent rise year on the year to Juuly 2000.
--from staff and wire reports 
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