PSA Reports Record Loss in 2012 image

Today, February 13th, PSA Peugeot Citroen reported record loss in 2012.

The French automaker announced that last year’s net loss reached 5.01 billion euro ($6.74 billion), from a profit of 588 million euro profit in 2011, mainly due to the 4.13 billion euro announced on February 7th, which reflects the negative outlook for the automaker’s main European markets. Last year’s loss was four time higher than the previous loss record of 1.16 billion euro reported in 2009, when the entire world was hit by the financial crisis.

Chief Executive Philippe Varin said that the foundations for the company’s rebound have been laid and that Peugeot’s asset sales and restructuring have surpassed the target. This year the company also expects profits from the year-old alliance with GM. The second largest automotive group in Europe, after VW, reported last year’s revenue down 1.50 billion euro, from a 92 million euro loss in 2011. The automaker spent 2.5 billion euro on the automobile division and 500 million euro on automotive supplier subsidiary Faurecia.

Chief Financial Officer Jean-Baptiste de Chatillon said that the company received 2 billion euro for selling its assets last year and that it expects 200 million this year from selling real-estate. The Chief Financial also dismissed rumors that the company plans to sell Faurecia or part of its 57.4% stake.