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


    YOU MIGHT ALSO LIKE

    'We scoured for days without sleeping, just clothes on our backs'

    'We scoured for days without sleeping, just clothes on our backs'

    The Philippines’ Typhoon Haiyan was the strongest storm ever to make landfall. Five years on, we revisit this story.

    How Moscow lost Riyadh in 1938

    How Moscow lost Riyadh in 1938

    Russian-Saudi relations could be very different today, if Stalin hadn't killed the Soviet ambassador to Saudi Arabia.

    Unification: Saladin and the Fall of Jerusalem

    Unification: Saladin and the Fall of Jerusalem

    We explore how Salah Ed-Din unified the Muslim states and recaptured the holy city of Jerusalem from the crusaders.