PSA Peugeot-Citroen said Wednesday it swung to a loss in the first half of 2009 due to shrinking vehicle sales and said it expected to see a recovery in the European automobile market only toward the end of 2010. The company reported a first-half net loss of €962 million ($1.36 billion) compared to a net profit of €733 million a year earlier. The loss was smaller than a consensus forecast of a €1.05 billion loss from seven analysts
polled by Dow Jones Newswires. However, Peugeot's first-half operating loss of €1.33 billion, compared to a profit of €1.03 billion in the first half of 2008, was above the consensus forecast of a €839.5 million loss. Revenue fell by 22% to €23.50 billion, reflecting the 20% drop in sales of the company's vehicles. Like other volume car makers, Peugeot-Citroen has been squeezed by the plunge in global automobile sales due to recession, as well as an unprecedented rapid shift in customer preference to smaller, less polluting cars. Peugeot said that with European automotive sales likely to contract by 7% in the second half of this year, it expected to post an operating loss of between €1 billion and €2 billion for 2009. In contrast to the disappointing results and gloomy outlook, Peugeot surprised market participants by announcing it had achieved a positive free cash flow of €467 million in the first half due to a 31% drop in its inventory of unsold cars. Shares rose 3.5% in early trading.
polled by Dow Jones Newswires. However, Peugeot's first-half operating loss of €1.33 billion, compared to a profit of €1.03 billion in the first half of 2008, was above the consensus forecast of a €839.5 million loss. Revenue fell by 22% to €23.50 billion, reflecting the 20% drop in sales of the company's vehicles. Like other volume car makers, Peugeot-Citroen has been squeezed by the plunge in global automobile sales due to recession, as well as an unprecedented rapid shift in customer preference to smaller, less polluting cars. Peugeot said that with European automotive sales likely to contract by 7% in the second half of this year, it expected to post an operating loss of between €1 billion and €2 billion for 2009. In contrast to the disappointing results and gloomy outlook, Peugeot surprised market participants by announcing it had achieved a positive free cash flow of €467 million in the first half due to a 31% drop in its inventory of unsold cars. Shares rose 3.5% in early trading.For further details visit as : http://online.wsj.com/article/SB124884835626689369.html
