 Peugeot is hoping to lure customers with new models |
Carmaker Peugeot has seen profits drop and warned that earnings are unlikely to pick up in the first half of 2006. The world's sixth-largest carmaker issued a second profit warning in January blaming rising raw material costs and waning consumer demand.
Operating income totalled 1.94bn euros (�1.3bn; $2.3bn) in 2005, in line with the company's forecasts and compared with 2.5bn a year earlier.
Shares in Peugeot lost more than 3% in early trade in Paris.
The firm - which makes cars under the Peugeot and Citroen brands - will launch new models in the hope of attracting more customers.
Peugeot sold 3.39 million vehicles in 2005. It said demand is set to be flat in Western Europe for most of 2006.
"Market pressures will continue," said Arndt Ellinghorst, an analyst at Dresdner Kleinwort Wasserstein.
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