PSA Burns Less Cash as Turnaround Takes Hold

PSA Peugeot Citroen narrowed its net loss in the first half of 2013 to €426 million from €818 million a year earlier. Revenue slid 4% to €27.7 billion.

PSA says restructuring cuts are beginning to gain traction, and its alliance with General Motors Co. is starting to reduce purchasing costs.

The company's net outflow of cash shrank to €51 million from €449 million in the first half of 2012. For the full year PSA aims to consume half as much cash as last year, when it burned through €3 billion.

Operating losses widened 27% to €65 million company wide but narrowed 22% to €510 million at its auto unit. Automotive revenue fell 8% to €18.7 million.