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22 Apr 2009
Q1 2009 Sales & Revenues
Key highlights· Q1 revenues drop 24.9% in line with markets and inventory reduction policy· Substantial decrease in inventories down 21.4% vs Q108· Market share of 13.8% in Western Europe due to leadership in low emission cars & Light Commercial Vehicles· €3bn French government and €0.4bn European Investment Bank loan contracts signed
Key highlights
- Q1 revenues drop 24.9% in line with markets and inventory reduction policy
- Substantial decrease in inventories down 21.4% vs Q108
- Market share of 13.8% in Western Europe due to leadership in low emission cars & Light Commercial Vehicles
- €3bn French government and €0.4bn European Investment Bank loan contracts signed
First quarter revenues illustrate, as expected, the full extent of the crisis being experienced by the automotive industry worldwide:
Market scenario & outlook
The Group’s scenario for European markets in 2009 remains unchanged at -20%. Whilst the various European incentive programmes have had a beneficial impact on sales, notably in France and in Germany, the overall outlook remains volatile with limited visibility at this stage in the year.
Financial position and significant events in the period
In February 2009, PSA Peugeot Citroën announced that liquidity was a key priority and that in the context of a conservative and proactive approach, the Industrial and commercial activity was expected to require around €4 billion of new funding in 2009. The agreement with the French Government for a loan of €3 billion will satisfy a significant share of this funding requirement together with a €400 million a loan from the European Investment Bank.
In February 2009, PSA Peugeot Citroën announced it expected 2009 to be a loss making year and to incur negative free cash flow. This expectation remains unchanged. The change in the payment terms to suppliers has had a negative impact on Free Cash Flow, but this has been partially offset by the benefits of the Cash 2009 programme to reduce inventory levels. In this context, CAP 2010 and CASH 2009 remain a priority and further inventory reduction will be pursued in the second quarter.
Automotive revenues declined 23% to €8 678 million in Q1 09. This drop is due essentially to the decline in volumes given the weak market and inventory reduction policy of destocking the dealership network. Q1 09 revenues for new cars declined by 27.4%, negatively impacted by a 24.9% fall in volumes, the change in segment mix to smaller, less expensive vehicles of 2.5% and a negative foreign exchange impact of 2.2% which was partially offset by a positive country mix of 1.1%.
| AUTOMOTIVE |
GEOGRAPHICAL HIGHLIGHTS (registrations):
Western Europe: Overall negative trends have continued during the first quarter. Markets in Western Europe dropped 18.5% overall, although Government scrappage incentives in several European countries did bring some relief. The most favourable impact was in Germany where the scrappage incentive led to a sharp increase of 15% in demand, despite the weak underlying macro economic environment. In France, the incentive scheme limited the market decline to 7.3%. All other European countries recorded significant falls with Italy down 19.9%, Spain collapsing by 44.1% and the UK dropping 31.5%.
In this context, the Group benefited from its strong, leading position in low consumption and low emission smaller cars; in Germany, the Group’s market share rose from 5.7% to 6% and in France from 32.6% to 33.3%. In the UK, so as to reduce the negative currency impact on sales, the Group recorded a 35.7% decline in registrations.
The Group’s market share in Western Europe overall was maintained at 13.8% in the first quarter compared to 2008 for the year as a whole. The Group continued to benefit from its leadership in light commercial vehicles (LCV) with a 3 point increase in market share to 22.4%.
Central & Oriental Europe: With markets in the region declining 38.5%, the Group’s gained 1.2 points of market share to 8.2% due to an improving presence in Turkey.
Russia: The market collapsed by 40.3% in the first quarter. The pursuit of the Group’s development in Russia resulted in a 26.6% increase in registrations, and a more than doubling of market share to 3.4% due to increased market penetration by the Peugeot brand and with the introduction of Citroën subsidiary.
Latin America: A contrasting first quarter was experienced in the region with the market down overall by 11%. On a positive note, Brazil saw an improvement in market conditions with an increase of 3.9%. Elsewhere the situation was strongly negative with Argentina down 13% and Mexico down 23%. The Group’s registrations overall were in line with market trends with a 5.6% market share.
China: The market returned to positive territory in Q1 with growth of 14.5%. The group’s continued to struggle in the face of stiff competition with registrations down by 3.5%.
CKD: Units sold rose by 40% to 93 000 after a strong March compared to 2008.
Despite the depth of the crisis, PSA Peugeot Citroën has continued the momentum of building its businesses for the future. Preliminary reports following new vehicle launches such as the Citroën C3 Picasso and the Peugeot 206+ are encouraging. These models are well positioned to meet the changing trends of consumers towards smaller, lower consumption and emission cars. Citroën launched with considerable success its new brand image "Creative Technologie“ in the quarter together with its new distinctive DS range due from early 2010.
107, 206 & 207, the Citroën C1, C3 which were boosted by the demand for small, low emission vehicles, and the successful Citroën C5.
28.3%. FAURECIA GEFCO BANQUE PSA FINANCE
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