Peugeot to report multi-billion euro writedown - sources

LONDON/PARIS Thu Feb 7, 2013 11:32pm IST

Citroen C3 automobiles are seen on the idled assembly line as striking employees prevent their colleagues from working at the PSA-Peugeot Citroen plant in Aulnay-sous-Bois, near Paris, February 4, 2013. REUTERS/Jacky Naegelen

Citroen C3 automobiles are seen on the idled assembly line as striking employees prevent their colleagues from working at the PSA-Peugeot Citroen plant in Aulnay-sous-Bois, near Paris, February 4, 2013.

Credit: Reuters/Jacky Naegelen

Related Topics

Stocks

   

LONDON/PARIS (Reuters) - French car maker PSA Peugeot Citroen(PEUP.PA) is set to announce a multi-billion euro writedown on its non-performing assets, two people familiar with the situation said.

Peugeot has net tangible assets worth 14 billion euros, according to Thomson Reuters data, and is expected to write down a significant part of it on Thursday, the people said.

Peugeot declined to comment. Traders said the company had called a surprise conference call for analysts on Thursday night.

Any such writedowns would come on top of operational headaches at Peugeot, which has been slammed by overcapacity and falling sales.

Analysts are forecasting a 1.52 billion euro full-year 2012 loss for Peugeot according to Thomson Reuters I/B/E/S. The firm is due to report results next Wednesday.

The auto unit of Peugeot, which last year was removed from France's benchmark Cac 40 index because of its declining market capitalisation, has been burning cash at a rate of roughly 200 million euros a month.

(Reporting by Sophie Sassard and Laurence Frost; Editing by Steve Slater and Elaine Hardcastle)

FILED UNDER:

Reuters Showcase

GDP Growth

GDP Growth

India revises up 2013/14 GDP growth to 6.9 percent.  Full Article 

Pharma Deal

Pharma Deal

Sun Pharmaceutical wins U.S. approval to buy Ranbaxy  Full Article 

Adani Restructuring

Adani Restructuring

Adani hives off power, ports businesses to boost growth.  Full Article 

Bank of Baroda

Bank of Baroda

Q3 net profit down 69 pct on higher provisions  Full Article 

Trading Fees

Trading Fees

BSE slashes fees in FX derivatives battle with NSE  Full Article 

SpiceJet Turnaround

SpiceJet Turnaround

SpiceJet board approves up to $243 mln share sale plan  Full Article 

Currency Market

Currency Market

RBI urges companies to hedge FX exposure  Full Article 

Banking Sector

Banking Sector

Banks say no room to cut lending rates, thwarting RBI easing  Full Article 

Reuters Poll

Reuters Poll

RBI seen holding rates steady on Tuesday, minority of analysts expect cut  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage