Peugeot Citroen reveals $1.4bn loss

French carmaker posts significant first-half losses as recession continues to hit sales.

    The recession has hit the car industry hard, with PSA's sales down 22 per cent in the first half of 2009 [EPA]

    Shares up

    Despite the reported loss, shares in the carmaker jumped on Wednesday, as efforts to improve the company's cash appeared to have paid off.

    Peugeot Citroen cut its inventory by 31 per cent in the first six months of the year, and reduced its debt from $4bn to $2.8bn.

    The company maintained its forecast for a 12 per cent drop in the European car market for 2009, with "the beginning of a recovery seen towards the end of 2010".

    Peugeot Citroen also reiterated that it expects to record a recurring operating loss this year of between $1.4bn and $2.8bn.

    SOURCE: Agencies


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