PSA Peugeot Citroën on Wednesday said its 2009 financial results reflected the impact of the economic crisis, with global sales down 2.2% to 3,188,000 units in a market down 3.1%, revenues down 10.9% to EUR48,417m and a recurring operating loss of EUR689m for the full year.
But market recovery in the second half, stimulated in some countries by government incentive schemes and new products, helped PSA to increase market share and to return to positive recurring operating income of EUR137m after a loss in the first half.
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PSA said the automotive division significantly reduced its operating losses in the second half while partsmaker Faurecia recorded positive recurring operating income in the second half as the full benefits of the turnaround started to feed through. Gefco delivered strong margin growth, while Banque PSA Finance produced a further set of good results.
As a result, PSA generated positive free cash flow of EUR809m for the full year and reduced net debt to EUR1,993m at 31 December 2009.
CEO Philippe Varin said: “Our financial results for 2009 show a much improved performance in the second half, but still reflect the severity of the crisis affecting the automotive industry. However, strict cash management and successful stock reduction enabled us to lower our debt substantially, reinforcing our sound financial position and giving us ample liquid resources.
In 2010, we expect the market conditions to be challenging, with a European market down 9%, but we will benefit from our automotive performance plan to drive sales, reduce costs and improve capacity utilisation. We are sustaining the momentum of our new model launches, and we should continue to grow our market shares. On this basis, we are expecting the group’s recurring operating income to be positive in the first half of 2010.”
For the full year, the group margin on revenues remained negative at -1.4%, compared to 1% a year earlier.
Non-recurring operating expenses totalled EUR727m against EUR944m in 2008.
They included EUR354m of restructuring charges, EUR206m due to the extension to March 2010 of the group’s voluntary separation plan and EUR129m relating to restructuring at Faurecia. Impairment costs in the automotive division amounted to EUR217m, all incurred in the first half.
Net financial expenses totalled EUR520m versus EUR286m in 2008.
This increase resulted from a marked decline in income from cash deposits, the interest costs on the government loan and higher financing costs at Faurecia.
The group net loss was EUR1,161m for FY 2009 or EUR5.12.
