PARIS—French car maker PSA Peugeot Citroë n said Wednesday it turned a profit for the first time since 2011 as higher prices, favorable foreign exchange rates and improved efficiency boosted the bottom line.

It posted a profit of €571 million ($632.43 million) for the first half of 2015 compared with a loss of €114 million a year earlier.

Peugeot said revenue during the six-month period rose 6.9% to €28.9 billion and that its car manufacturing and sales generated an operating free cash flow of €2.7 billion.

"We are going faster than our plan," said Chief Financial Officer Jean-Baptiste de Chatillon, referring to the company's "Back in the Race" restructuring plan that kick-started last year.

Mr. de Chatillon said the automotive division's operating profit margins rose to 5%, far ahead of the targeted 2% it sought to reach by the end of the three-year plan. He said that one-third of the increased profitability came from favorable external conditions, such as advantageous foreign exchange rates and lower prices for oil and other raw materials.

While sales growth in Asia has slowed considerably—it sold just 2.2% in the China and Southeast Asia region—Mr. de Chattilon said that it improved its profit margins in China to 9% from 7%. The country emerged last year as the company's largest market, outpacing demand in its home of France.

The company adjusted its global outlook for auto sales. It now thinks European sales will rise 6% while demand in China will grow just 3%. It added that overall car sales will decline 15% in Latin America and 35% in Russia. At the beginning of the year, Peugeot forecast a 1% increase in Europe, a 7% rise in China and a 30% decline in Russia.

Write to Jason Chow at jason.chow@wsj.com

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