France - business

Peugeot Citroën hits first half slump

Article published on the 2009-07-29 Latest update 2009-07-29 07:58 TU

Peugeot Citroen revealed big first half losses
(Photo: AFP)

France’s leading carmaker, PSA Peugeot Citroën, has reported a first half loss of 962 million euros as the car industry struggles in the face of the global economic crisis.

The company reported a net profit of 733 million euros in the first half of 2008 but finished the year with a net loss of 343 million euros.

In a statement, PSA said it was maintaining its forecast for a 12 per cent fall in the European vehicle market this year, with "the beginning of a recovery seen towards the end of 2010".

The results “reflect the impact of adverse conditions in the European markets, which were only partially mitigated by the benefits from performance action plans and new model launches”, Chief Executive Officer Philippe Varin said in the statement.

The company reaffirmed its forecast for a 2009 operating loss of between one and two billion euros after a first half loss of 826 million euros.

First half sales were down 21.8 percent at 23.5 billion euros.