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Peugeot first-quarter sales fall 1.4 percent on currencies

Reuters
A veiled Peugeot 208 is seen during the first press day ahead of the 85th International Motor Show in Geneva March 3, 2015. REUTERS/Arnd Wiegmann/File Photo

PARIS (Reuters) - PSA Peugeot Citroen (PEUP.PA) posted a 1.4 percent drop in first-quarter group sales, dragged down by negative currency effects, but the French carmaker said it was more optimistic about the European auto market this year.

Quarterly revenue reached 12.998 billion euros (10 billion pounds), Peugeot said on Wednesday, down from 13.185 billion a year ago. Sales rose 1.5 percent at constant exchange rates.

Sales volumes fell 1.7 percent during the quarter to 699,800 vehicles, Peugeot added, with an 18 percent drop in China outweighing a 5.9 percent rise in Europe.

Peugeot lifted its forecast for the European auto market, saying it now expected growth of 4 percent this year versus 2 percent previously.

(Reporting by James Regan and Gilles Guillaume; Editing by Andrew Callus)