Wednesday February 11, 08:24 AM
Peugeot Citroen announce 343-mln-euro loss
PARIS, (AFP) - French carmaker PSA Peugeot Citroen announced on Wednesday a net loss of 343 million euros (443 million dollars) for 2008, and warned of more bad times this year, two days after the French state gave the auto sector crisis loans.
Chief executive Christian Streiff said the group was working on the basis that "the auto markets in Europe could fall further, by about 20 percent in 2009, and on the market stabilising in 2010."
Group sales fell by 7.4 percent last year from the 2007 level to 54.4 billion euros, reflecting a sudden drop in demand as the credit crisis began to bite, although French auto makers have been less hard hit than the sector in the United States, Britain and Spain, for example.
The current operating margin fell to 1.0 percent of sales from 3.0 percent in 2007.
The 2008 losses compare to profits in 2007 of 885 million euros.
Streiff warned that the first half of 2009 would be particularly difficult, but the company aimed to "return to profit in 2010."
On Monday the group welcomed a decision by French President Nicolas Sarkozy to lend the group 3.0 billion euros, part of a 6.5-billion-euro state aid package to French carmakers.
Streiff said that "with an outlook of prolonged recession" his main concern was to "concentrate every effort on the reduction of stocks (inventories)" and on careful use of cash.
The group would continue efforts to reduce costs.
|
|
|
Send Article by Email
Send Article by IM
Blog This with Y! 360
Printable View
