Launch of 208 could trigger better news
Perhaps the bad news for Peugeot has come to an end, and the launch of the new 208 will signal a turnaround in the company’s fortunes.
Or maybe not.
According to Deutsche Bank in a report headed “Peugeot SA: Has the trough been reached?” first half operating losses are likely to be worse than expected at closer to minus €660 million than the minus €500 million previously expected.
Last month J.P.Morgan raised its loss estimate for Peugeot’s automotive operations in 2012 to €633 million from a previous expectation of €615 million, on an earnings before interest and tax basis (EBIT), implying a much improved second half. Last year the automotive division lost €92 million. In the first quarter of 2012, PSA Peugeot-Citroen’s automotive division saw sales dive 14 per cent to €9.72 billion.
Deutsche Bank said the second half should be an improvement thanks to more cost savings and the launch of of the 208.
“We need to get confirmation(from Peugeot) that the trough has been reached in the first half. And we are not ready to take that bet today,” said Deutsche Bank analysts Gaetan Toulemonde.
Neil Winton – June 15, 2012
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