Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

Burkina Faso: Calls for probe into 1998 murder of journalist

Read more

IN THE PAPERS

All dogs may go to heaven after all

Read more

IN THE PAPERS

French MP's debate whether or not to recognize Palestine

Read more

MEDIAWATCH

Ferguson and race relations in the US

Read more

DEBATE

Hollande and Africa: French President Speaks to France 24

Read more

FOCUS

Thiaroye: a dark chapter in France and Senegal's common history

Read more

THE BUSINESS INTERVIEW

The 'Stagnation Trap', with Catherine Mann, Chief Economist at OECD

Read more

ENCORE!

'An American in Paris', a truly transatlantic collaboration

Read more

BUSINESS DAILY

Oil prices 'could fall further' without OPEC output cut

Read more

France

Peugeot sees net loss of €819 million in first half 2012

Video by Katharyn GILLAM

Text by News Wires

Latest update : 2012-07-25

Beleaguered French carmaker PSA Peugeot Citroen announced plans Wednesday for a €1.5 billion cost-reduction plan after posting net losses of €819 million in the first half of 2012, compared to €806 million in net profits for the same period in 2011.

AFP - Struggling French carmaker PSA Peugeot Citroen said Wednesday it had suffered a net loss of 819 million euros ($989 million) in the first half, against a net profit of 806 million euros in the first half of 2011.

The company, which has already announced 8,000 job cuts in France, said it will be implementing a 1.5-billion-euro cost reduction plan by 2015.

Peugeot, France's biggest carmaker and the second-largest in Europe, had already indicated it had suffered a loss in the first half but the figure was worse than analysts' expectations.

In a statement, Peugeot said its revenues were down 5.1 percent in the first half to 29.6 billion euros while its recurring operating income was at breakeven at four million euros, against 1.16 billion euros in the first half of 2011.

Its auto division suffered an operational net loss of 662 million euros.

The cost cutting plan, dubbed "Rebound 2015" in the statement, will include 600 million euros in savings from reorganising French production, which includes the previously announced job cuts.

Another 550 million euros will be saved by reducing capital expenditures and 350 million euros will be from cost savings expected from a tie-up with US giant General Motors announced earlier this year.

"The group is facing difficult times," Peugeot chief Philippe Varin said in the statement.

"The depth and persistence of the crisis impacting our business in Europe requires the launch of the reorganisation of our French production base and a reduction in our structural costs," he said.

"Restoring the group's competitiveness will secure its future," he said.
 

Date created : 2012-07-25

  • FRANCE

    Workers face 'disaster' at doomed Paris Peugeot plant

    Read more

  • FRANCE

    Peugeot Citroen automaker to cut 8,000 French jobs

    Read more

COMMENT(S)