PSA Peugeot Citroen lost almost $1bln in first half image

PSA Peugeot Citroen, France’s largest carmaker says it lost $990 million (€819 million) in the first half of the year hurt by lower sales at Automotive unit.

The net loss Group share amounted to 819 million euros, versus a profit of 806 million euros in the first half 2011. The loss per share totaled 2.73 euros, versus earnings per share of 3.55 euros a year ago.

“The depth and persistence of the crisis impacting our business in Europe requires the launch of the reorganisation,” Chief Executive Philippe Varin said in a statement.

“We have a clear understanding of how hard this project is for a large number of our employees.”

The maker of two-thirds of France’s cars, which employs 100,000 people in the country, is a key symbol of the country’s industry and its problems highlight France’s difficulty in competing with rivals with lower labour costs.

The cost cutting plan, dubbed “Rebound 2015“, that was announced today by the company , will include 600 million euros in savings from reorganising French production, which includes the previously announced job cuts.

In addition, PSA aims to cut 550 million euros from investment and generate a further 350 million through cooperation with alliance partner General Motors.

Summary income statement

In € millions

H1 2011

H1 2012

Revenues

31,135

29,553

Recurring operating income

1,157

4

As a % of revenue

3.7%

0.0%

Net income, Group share

806

(819)

Earnings per share (in euros)

3.55

(2.73)

Automotive Division

In € millions

H1 2011

H1 2012

Revenues

22,585

20,203

Recurring operating income/(loss)

405

(662)

As a % of revenue

1.8%

-3.3%

Operating Income/(loss)

418

(1,278)

Faurecia

In € millions

H1 2011

H1 2012

Revenues

8,150

8,765

Recurring operating income

340

303

As a % of revenue

4.2%

3.5%

Consolidated profit

207

141

Gefco

In € millions

H1 2011

H1 2012

Revenues

2,017

1,881

Recurring operating income

143

63

Banque PSA Finance

In € millions

H1 2011

H1 2012

Net banking revenue

524

542

Revenues

942

979

Recurring operating income

274

271