PSA/Peugeot-Citroen posts 7.3% revenue drop for first quarter of 2012

Article by Anita Panait, on April 26, 2012

PSA/Peugeot-Citroen posted a 7.3 percent drop in revenue for the first three months of 2012 to EUR14.29 billion ($18.9 billion). The company automotive division suffered the biggest drop in sales for the three-month period, at 14 percent to EUR9.72 billion. In a statement released by PSA, the company blamed the still difficult sales environment, with similar pricing pressure as in the last quarter of 2011. 

PSA also blamed the worsening markets in southern Europe that have negatively affected the company’s country mix.PSA said they expect this environment to last throughout the first half of 2012. To address its overcapacity and plug its withering profitability, PSA signed a vehicle-development alliance in February with General Motors Co., whose European operations are also bleeding from losses.

Kristina Church, an analyst at Barclays Bank Plc in London, said that although PSA’s first quarter results were bad, they are not worse than expected as the market had been assuming that the pricing would be worse.

According to Church, PSA’s management sounded like they are on top of the situation as they expressed their confidence for the rest of 2012.  In its report, PSA said it has completed about half of its EUR1.5 billion asset-sale plan, and has made progress towards achieving its EUR1 billion spending- reduction program. PSA said that this program is expected to cut the company’s net debt significantly.

According to automakers association ACEA, the first quarter car sales in Europe across the industry dipped 7.3 percent to 3.43 million vehicles, with PSA being the third-worst performer among the continent's major carmakers. PSA’s European sales dropped 17 percent to 407,792 cars, in contrast with first quarter performance of Volkswagen Group, which managed to post a sales increase of 0.5 percent to 813,522 vehicles.

Topics: psa, peugeot, citroen

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

In Japan, Toyota stays in the limelight by always cooking up something new for its famous 86 sports car. A colour orange Toyota 86 performance edition is one that’s hard...
by - December 4, 2016
Back in 2009, Nissan first introduced the Nissan Leaf, the company’s first all-electric vehicle. LEAF stands for Leading Environmentally-friendly Affordable Family car and this particular EV has been considered as...
by - December 3, 2016
In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries