PARIS Feb 13 PSA Peugeot Citroen unveiled a 5 billion-euro ($6.73 billion) net loss for 2012, bloated by asset write-downs, and vowed to halve cash consumption this year even as European car demand shrinks further.
The net loss, which compares with a 588 million-euro profit the previous year, reflected 4.74 billion in asset write-downs as well as collapsing European sales of Peugeot and Citroen models, the company said in a statement on Wednesday.
Losses at the struggling auto division swelled to 1.5 billion euros from 92 million a year earlier, as group revenue fell 5.2 percent to 58.4 billion.
The company said a recovery plan to cut manufacturing costs achieved savings of 1.18 billion euros, ahead of its 1 billion goal.
"The results of the cost reduction and asset disposal plans have exceeded our targets," Chief Executive Philippe Varin said in a statement. "The foundations for our rebound have been laid."
He reiterated the company's aim this year to halve negative operating cash flow, which amounted to 3 billion euros in 2012, including 2.5 billion euros at the auto division. ($1 = 0.7427 euros) (Reporting by Laurence Frost; Editing by James Regan)