Tags: EU | France | Earns | Peugeot | Citroen

Peugeot Trims Loss, Sees Challenging Year

Wednesday, 10 Feb 2010 09:02 AM

French car maker PSA Peugeot Citroen SA said Wednesday that it reduced losses in the second half of last year because of government scrappage plans but predicted that 2010 will remain challenging.

The maker of the popular Peugeot 207 and Citroen C4 Picasso said it lost 199 million euros ($274 million) in the second half of 2009 compared to a loss of 962 million euros in the first half.

Over the full year, Peugeot Citroen lost a record 1.16 billion euros — in line with analyst expectations — compared with a net loss of 363 million euros in 2008.

Revenue fell 11 percent to 48.4 billion euros over the full year. The figures mask a return to revenue growth in the second half after a collapse in the first six months.

"2009 was a year of contrasts," CEO Philippe Varin said at a press conference in Paris. "In 2010, we expect the market conditions to be challenging."

This year, the company predicts that the European market will shrink by 9 percent.

France's largest car maker said that it expects one measure of underlying profitability — recurring operating income — to be positive in the first half of this year.

In the second half of last year, Peugeot Citroen returned to positive recurring operating income of 137 million euros after a loss in the first half.

The Paris-based company is planning a host of new models as part of a three-year plan to boost earnings and gain market share.

EU carmakers' association ACEA said car buyers are increasingly favoring smaller, lighter and more fuel-efficient cars over heavier and more expensive models.

Peugeot Citroen's new models included the new Citroen DS series of high-end small cars designed for monied urban customers, and the electric C-Zero.

The company also reduced net debt by 913 million euros to 1.99 billion euros at the end of last year after cutting stocks. Inventory was reduced 30 percent to 440,000 vehicles.

Varin said Peugeot Citroen is still talking with Mitsubishi Motors Corp. over a possible joint venture and said relations are "very positive." In December the French carmaker said it was in talks that could lead to a "strategic partnership."

Peugeot Citroen wants to expand in Asia, he said.

© Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

1Like our page
2Share
Companies
French car maker PSA Peugeot Citroen SA said Wednesday that it reduced losses in the second half of last year because of government scrappage plans but predicted that 2010 will remain challenging.The maker of the popular Peugeot 207 and Citroen C4 Picasso said it lost 199...
EU,France,Earns,Peugeot,Citroen
368
2010-02-10
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved