PSA Peugeot Citroen, France's largest carmaker, reported a loss for the first half as it slashed production amid the global slump in auto sales.
The net loss was 962 million euros ($1.36 billion), or 4.24 euros a share, compared with a 733 million-euro profit, or 3.21 euros, a year earlier, Paris-based Peugeot said today in an e- mailed statement. Revenue fell 22 percent to 23.5 billion euros.
Analysts had expected a 971.5 million-euro loss on sales of 24.1 billion euros, according to the median of estimates compiled by Bloomberg.
The results "reflect the impact of adverse conditions in the European markets, which were only partially mitigated by the benefits from performance action plans and new model launches," Chief Executive Officer Philippe Varin said in the statement.
Peugeot and other European carmakers maintained temporary plant closures into the first quarter as they struggled to reverse a buildup of unsold cars. Varin, who took over from Christian Streiff in March, is pressing ahead with measures to shorten vehicle development times and trim costs while seeking new partnerships and alliances to expand into emerging markets.
Peugeot recorded an operating loss of 826 million euros, excluding one-time gains and losses, compared with a profit of 1.12 billion euros a year earlier.
Peugeot rose 18 cents, or 1 percent, to 18.41 euros in Paris trading yesterday. The stock has jumped 52 percent this year, valuing the company at 4.3 billion euros. The Bloomberg Europe Autos Index gained 11 percent in the period.
Outlook
The company said today it expects a full-year operating loss of 1 billion euros to 2 billion euros, amid a 12 percent industrywide decline in European car sales. In February, Peugeot had forecast a 20 percent European market decline, along with negative cash flow and a net loss for the full year, weighed down by a "particularly difficult" first half.
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