ANALYSIS: PSA loss "not as catastrophic" as feared: Metzler Bank analyst
By Simon Warburton | 13 February 2013
 |
Write-downs and a collapse to sales in Europe have left PSA with a record net loss for 2012 |
PSA Peugeot Citroen may be on the verge of turning the financial corner says one leading analyst despite the automaker posting huge losses today (13 February) of EUR5bn (US$6.7bn).
The bad figures reflect the ongoing struggles in Europe, but Metzler Bank, Germany's oldest private bank still owned by the founding family, believes the worst may soon be over.
"Not as bad [figures] or as catastrophic as I thought," Metzler Bank automotive analyst, Juergen Pieper, told just-auto from Germany. "It is a little bit better than expected on the liquidity side, on the cash flow side.
"We always heard from PSA outflow is EUR200m [burn], so now it is hardly more than EUR100m per month. The Group operating loss of EUR580m or so is slightly better than expected. Two of the key results are not as bad as expected."
PSA also chose to include a write down of EUR4.7bn in asset valuations, with the combined headline figure comparing to a net profit in 2011 of EUR588m.
The automaker also points out it implemented cost savings of EUR1.2bn last year - ahead of target - and that premium vehicle sales had doubled their market share.
"They said cash out improves to half the rate of last year - OK this is likely a lot depends on the European markets and there is no positive sign yet," said Pieper.
"There is maybe very cautious optimism. At the moment we are perhaps in the worst situation [but] we have seen slow improvement over the course of year with the chance the fourth quarter may find its bottom."
PSA recently held the last of a series of ten meetings with its major unions to thrash out the terms of a restructuring plan that will see it axe up to 8,000 staff and close its Aulnay plant near Paris.
The automaker's banking division also recently received a temporary green light from the European Commission for France to guarantee EUR1.2bn to avoid any "contagion" to the country's banking system.
Approval of the short-term measure is subject however, to PSA presenting a restructuring plan to the Commission, which includes the viability of Banque PSA Finance.
Sectors: Financial, Vehicle manufacturers, Vehicle manufacturing
Companies: PSA, Peugeot, Citroen
View next/previous articles
14 Feb 2013 -Currently reading -
ANALYSIS: PSA loss "not as catastrophic" as feared: Metzler Bank analyst
Related company research
PSA Peugeot Citroen S.A. - SWOT, Strategy and Corporate Finance Report
PSA Peugeot Citroen S.A. - SWOT, Strategy and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service offerings, detailed financials...
PSA Peugeot Citroen : Automotive - Company Profile, SWOT & Financial Report
ICD Research's "PSA Peugeot Citroen : Automotive - Company Profile, SWOT & Financial Report" contains in depth information and data about the company and its operations. The profile contains a company overview, key facts,major products and services, ...
Fleet Lessor Profiler - Banque PSA Finance 2010
The European market for fleet leasing and management has witnessed continuous consolidation in recent years. Currently, Europe's largest leasing and fleet management companies account for more than half of all company cars and vans funded by operatio...
Related articles
CHINA: Dongfeng takes stake in MMC partner Fujian
Dongfeng Motor has taken a shareholding in MMC's joint venture partner Fujian Motor. The deal gives China's second largest OEM new access to manufacturing capacity in the country's south east.
UK: Western Europe's main dealer count declined in 2012 (but only by 3%)
Research by the UK-based ICDP shows that the collapse to demand in Western Europe is leading to a decline in the number of main dealer sales networks across the region.
Read more on this hot issue
Last quarter/full year financial results
Results season continues - fourth quarter, full year, third fiscal, first fiscal - we're still compiling them here - along with our own analysts' comments - as the data rolls in.
Read further items in this columns
just-auto business editor Simon Warburton offers up a wide range of views in his distinctive style, informed by daily contact with the global auto industry
There are currently no comments on this article
Be the first to comment on this article