AM Online

PSA warns of operating loss for 2009

PSA Peugeot Citroen has warned that it expects to post an operating loss of £855 million in 2009.

PSA blamed falling sales, combined with uncertainty over whether governments would continue to financially support the sector.

PSA has already received €3bn (£2.6bn)  from the French government and has now issued a convertible bond offer intended to raise up to €575m (£493m) in order to shore up its finances.

Despite the expected loss, PSA said remains more positive about the European market as whole, expecting it to decline by 12% rather than the 20% it had originally forecast.

Peugeot said: “A number of uncertainties remain like whether or not the government support programs will be pursued in 2010. If not, fourth-quarter production will be scaled back.”

If you are not a registered user your comment will go to AM for approval before publishing. To avoid this requirement please register or login.

Comment as guest

Login  /  Register


No comments have been made yet.