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PSA Peugeot Citroën posts $6.7 billion loss

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Staff writer |
PSA Peugeot CitroënPSA Peugeot Citroën reported that consolidated revenues declined by 5.2% to $74 billion (€55 billion) in 2012, impacted by the 10.3% drop in Automotive Division.


Consolidated revenues declined to €55,446 million in 2012, impacted by the 10.3% drop in Automotive Division revenues, to €38.3 billion, primarily reflecting an 8.8% decline in units sales excluding CKDs, and an unfavourable country mix, with markets in Southern Europe accounting for 57% of Group sales. Revenues from the other Divisions rose during the year, with Faurecia contributing €17,365 million and Banque PSA Finance (BPF) €1,910 million.

The consolidated recurring operating loss amounted to €576 million, versus consolidated recurring operating income of €1,093 million a year earlier. This result was primarily attributable to the Automotive Division, which recorded a loss of €1,504 million for the year compared with a loss of €92 million in 2011, impacted by lower volumes and pricing pressure.

The net loss, Group share totalled €5 billion, versus a profit of €588 million in 2011 after the depreciation of assets and exceptional charges.

Philippe Varin"The Group's 2012 results reflect the deteriorated environment in the automotive sector in Europe. In this context we have taken the difficult but necessary measures to reorganise our manufacturing base in France. The results of the cost reduction and asset disposal plans have exceeded our targets, highlighting the exceptional commitment of our employees. Finally, our strategic Alliance with GM has entered into execution phase," said Philippe Varin, chairman of the PSA Peugeot Citroën managing board.

The recession in Europe also weighed on Faurecia's recurring operating income, which declined by 21% to €514 million. At Banque PSA Finance, recurring operating income fell by 26.5% to €391 million, reflecting a revision in November of the statistical model used to calculate provisions in respect of retail loans, which had an exceptional impact of €136 million.

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