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Peugeot hit by 1.1 billion euro writedown, trims GM goals

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(Globalpost/GlobalPost)

PARIS (Reuters) - PSA Peugeot Citroen <PEUP.PA> announced a 1.1 billion euro ($1.52 billion) writedown on Thursday, reflecting a weaker sales outlook and currency headwinds in Russia and Latin America.

Peugeot will take the asset impairment on its 2013 earnings, widening an automotive operating loss that came to 510 million euros in the first half, the Paris-based company said in a statement.

The company also cut its 2018 savings goal from joint programs with General Motors <GM.N> by 40 percent to $600 million for each partner, after the carmakers dropped plans to pool the development and production of small cars.

But Peugeot reiterated its full-year goal of halving the negative 3 billion euro operating cash flow recorded in 2012.

(Reporting by Laurence Frost, editing by Astrid Wendlandt)

http://www.globalpost.com/dispatch/news/thomson-reuters/131212/peugeot-hit-11-billion-euro-writedown-trims-gm-goals