Peugeot grim after profit
FRENCH carmaker Peugeot Citroen warned its second-half performance would be hampered by a tougher economic environment, yesterday sending its shares lower even though it swung to a first-half profit.
Shares fell sharply following the announcement, before closing down four per cent at €23.89 (£19.90).
Europe’s second-largest carmaker behind Volkswagen posted first-half recurring operating income of €1.14bn, compared with a recurring operating loss of €826m for the same time last year.
Peugeot expects its automotive division to be “close to break-even” in the second half, despite seasonality and “more difficult market conditions” for the rest of the year in Europe where scrapping schemes are grinding to a halt. Chief executive Philippe Varin, however, cautioned Peugeot would have to cope with a tougher economic environment in the coming months.
“Clearly the economic context is going to be less favourable, and will have a negative impact in the second half,” Varin said yesterday.