PSA Peugeot Citroen, Europe's second-biggest automaker, rose to the highest level in 10 weeks after reporting a 28 percent jump in first-quarter sales on new models. The company forecast "significant" operating income for the first half.
The shares gained as much as 4.6 percent, and traded up 3.9 percent to 23.8 euros, the highest price since Feb. 4, at 9:10 a.m. in Paris.
Revenue rose to 13.99 billion euros ($18.8 billion) from 10.97 billion euros a year earlier, the Paris-based company said today in a statement. That compares with the 13 billion-euro average estimate of five analysts surveyed by Bloomberg.
The carmaker has updated its offering with vehicles such as the Citroen C3 Picasso and Peugeot 3008 compact minivans, helping it win business from rivals including Volkswagen AG, Europe's biggest carmaker. Peugeot recorded a 20 percent gain in first-quarter European sales, more than doubling VW's growth rate, as the market grew 11 percent, according to figures released last week by the Brussels-based European Automobile Manufacturers' Association.
"The product mix is stronger than expected," said London- based UBS analyst Philippe Houchois, who recommends buying Peugeot shares. Peugeot's sales gain was not achieved by "rebuilding dealer stock," he said.
New vehicles will increase Peugeot's European market share through 2010 and limit the impact of possibly "difficult" second-half conditions, Chief Executive Officer Philippe Varin said in the statement.
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