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PSA Revenue Drops 7% on Weak European Demand
PSA Peugeot Citroen posted revenue of €14.3 billion in the first quarter of this year compared to €15.4 billion in the same period of 2011.
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PSA Peugeot Citroen posted revenue of €14.3 billion in the first quarter of this year compared to €15.4 billion in the same period of 2011. The company blames sharply lower demand in southern Europe and escalating price competition.
PSA's automotive revenue fell 14% to €9.7 billion in the quarter as its worldwide deliveries dropped 14% to 790,100 vehicles. Volume slid 20% in Europe, including a 30% decline in France. PSA says the average price of its new vehicles dipped nearly 1%, thus further reducing automotive revenue.
The company's other units fared better. Revenue at the company's finance arm and Faurecia parts affiliate rose 6% €496 million and 8% to €4.3 billion, respectively, but dipped 4% to €935 million at its Gefco logistics unit.
PSA was unable to shrink its inventory of unsold cars, ending March with a 70-day supply, one day more than at the end of 2011. The company aims to shrink its vehicle stockpile to 61 days by year-end.
PSA reiterates its full-year forecast for a 5% decline in industrywide sales in Europe and a 10% drop in France.
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