PSA/Peugeot-Citroen shares slump on second-half

Article by Christian A., on August 26, 2010

PSA/Peugeot-Citroen may have posted a profit in the first half but the carmaker warns that its performance in the second-half would be obstructed by a tougher economic environment. This report sent its shares even lower.

By 13:00 GMT, PSA shares traded 5.35% lower at 23.55 euros, underperforming a 0.85% drop in the Stoxx 600 European Autos index. Before the plunge last Wednesday, the shares had risen 24% in July.

As the car demand in Europe has fallen due to the fading scrappage schemes, carmakers have become increasingly dependent on growth in emerging regions like China and Latin America.

PSA expects that in the second half, its automotive division will be "close to break-even" despite seasonality and "more difficult market conditions" for the rest of the year in Europe.

In a news conference, CEO Philippe Varin said that PSA will have to deal with a tougher economic environment in the second half.

Varin said that in the first half, the economic context had a positive impact but then, a negative impact is expected in the second half. Barclays Capital analysts said that the "second half outlook is over optimistic."

In a research note, Varin stated that even as PSA has had a good model lineup and has accelerated cost-savings compared to the old plan, the carmaker aims to remain more cautious than the company on the outlook for H2 2010. [via autonews - sub. required]

If you liked the article, share on:

Topics: psa, peugeot, citroen, shares

Comments

Recommended

Lamborghini had been expected to refresh its entry-level model – the Lamborghini Huracan – in late 2018 or early 2019. But here is some good news for fans of the...
by - November 20, 2017
The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 2017
Tesla revealed that with its new Semi, truck drivers can expect better experience especially with heightened safety and the lower cost of transporting cargo. Indeed, the cabin of the new...
by - November 19, 2017
November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 2017
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