PSA Peugeot Citroen has reported an operating loss of EUR177m for 2013, an improvement on the EUR560m lost in 2012. Sales fell 2.4% to EUR54.1bn.

Automotive sales fell 4.8% to EUR36.5bn. Faurecia booked EUR18,029m in revenues, up 3.9%, while Banque PSA Finance (BPF) saw a 7.2% decline to EUR1,773m.

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The Automotive Division’s recurring operating loss improved by EUR454m to EUR1,042m over the year thanks to new models, reduced discounting, “significant” cost reductions and lower amortisation charges.

Faurecia operating income rose 4.3% to EUR538m while Banque PSA Finance profit fell 5.9% to EUR368m due to weak European markets and higher financing costs.

One off operating income and expense losses last year toalled EUR1,169m compared with EUR4,122m in 2012. Most of that was a EUR1,101m impairment charge on the assets of the Automotive Division, primarily to reflect deteriorating markets and adverse exchange rate movements in Russia and Latin America.

Restructuring costs totalled EUR460m in 2013, versus EUR528m in 2012.

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Chairman Philippe Varin said: “We have gone through some very challenging years for the European automotive industry, which have added to the group’s structural difficulties, notably its over-dependence on Europe. We vigorously implemented difficult restructuring measures which are now starting to bear fruit. We also launched core models this year that have exceeded their initial sales targets. The globalisation process is proceeding apace, with in particular an excellent performance in China.

“The exceptional mobilisation of all our employees has enabled us to lay the foundations for a turnaround in Europe and to return to profitable growth.”

Outlook

In 2014, PSA Peugeot Citroën expects growth in automotive demand to be slightly positive at around 2% in Europe and around 10% in China, with a 2% decline in Latin America, and a stable market in Russia.