French carmaker PSA Peugeot Citroen refused to give a 2010 forecast beyond mid-year and warned conditions would remain tough, after it posted its biggest net loss in 20 years for 2009.
The group said in a statement on Wednesday it expected the European market to decline 9 percent this year, but that efforts to drive sales, cut costs and improve capacity utilization as well as new model launches would benefit PSA and it would post a positive recurring operating income in the first half.
"Given that the end of 2010 will represent the start of economic recovery as well as the end of scrapping schemes -- with some uncertainties over the timing of the end of the different schemes, we preferred to limit our commitment to the first half," Chief Executive Philippe Varin told a news conference.
The European auto industry faces the prospect of falling sales as many of the scrappage schemes brought in early last year to prop up plummeting markets are gradually phased out.
Last year, European new car sales fell just 1.6 percent despite a savage crisis in the car industry worldwide, thanks to scrapping measures that inflated demand in many major markets.
PSA's full-year net loss widened to 1.161 billion euros, its biggest loss in 20 years and compared with a Thomson Reuters I/B/E/S mean estimate of 1.104 billion euros.
Commenting on PSA's results, Societe Generale analyst Eric-Alain Michelis said: "By giving a forecast only for the first half of 2010, the group is doing the bare minimum, playing it safe."
Another Paris-based analyst agreed, saying the target was "very cautious" and risked disappointing the market.
Shares in PSA Peugeot Citroen closed 4.93 percent lower at 21.21 euros, against a DJ Stoxx European Autos index .SXAP up 0.27 percent.
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PSA posted a recurring operating loss of 689 million euros for the year, though its fortunes turned around in the second half when it reported a recurring operating profit of 137 million.
Restructuring charges related to a voluntary departure plan and to restructuring at its Faurecia unit were higher than forecast, the second analyst said.
But the group's liquidity position of 8.6 billion euros at the end of 2009 was better than expected, he added.
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