Tough times for Europe’s second-largest carmaker, as PSA Peugeot-Citroen will be removed from CAC 40, France’s leading stock index.
NYSE Euronext has announced the decision after PSA Peugeot-Citroen’s shares declined more than 60 percent in the last 12 months. Peugeot shares have been nearing a 26-year low in recent months as Europe’s economy has been struggling.
For the last year, Peugeot’s automotive division has been losing 200 million euros in cash every month, according to CEO Philippe Varin. PSA Peugeot-Citroen reported a 819 million-euro first-half net loss.
The company will be replaced by Solvay SA in the CAC 40 index on September 24, NYSE Euronext announced in a statement. The decision to remove Peugeot came after a meeting of NYSE Euronext’s seven-member scientific board. The company reviews the performance of companies listed on CAC 40 every quarter, with the board being guided by the number of shares available, known as free float, as well as market capitalization and revenue trends.
Peugeot declined to comment on the issue. PSA Peugeot-Citroen shares were first listed in Paris in 1925 and have traded continuously since then.