PSA Peugeot Citroen’s profit decreases

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Author: Translation: Panker Gergő // 02/20/2012 10:03

The weak state of the European vehicle market left its mark on PSA Peugeot Citroen’s results from last year: the profit of the continent’s second largest automotive group halved, and the company reported losses on an operational level as well. The group is expecting a difficult period, as last year, due to decreasing demands, sales went down by 1.5% to 3.5 million units

According to PSA Peugeot Citroen’s announcement on Wednesday, the group’s post-tax earnings decreased to 588 million EUR from the 1.13 billion they had registered the year before. The automotive division booked 92 billion EUR losses on the operational level, while in the previous year their winnings reached 600 billion EUR. Sales chiefly subsided in the second half, so the profit gained in the first half were swept away by the losses generated in the period between June and December.

On the group level, production results dropped by 27% from 1.80 billion to 1.32 billion EUR, while the company’s income increased by 7% to 60 billion EUR.

PSA wish to continue their cost-effective programme, and their plan to increase savings by 200 million EUR to 1 billion could result in a reduction of workforce by several thousand. In addition, the company will part from several of its business shares.

The management of PSA expects sales in Europe, their most important market, to decrease by 5%, while in France the decline could reach 10%. The Group’s prospects are positive regarding China, Latin America and Russia.

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