French car maker PSA Peugeot Citroen plans to sell a stake in its logistics business, Gefco, as part of an asset disposal programme to raise 1.5 billion euros.
Philippe Varin, chairman of the PSA Peugeot Citroën managing board, said: “Deterioration in our business environment from the end of the first half lead to very disappointing results from our Automotive Division. Other divisions – Faurecia, Gefco and Banque PSA Finance made a positive contribution to our results.
“We implement a strong cash management program: we step up the costs measures announced last October from 800m euros to 1bn euros. In addition, we will launch an assets disposal program, including CITER, that will include property assets and the opening of Gefco’s capital, for a global amount around 1.5bn euros.”
The group has not specified how big a stake it will sell in Gefco, which is it’s key logistics provider.
Gefco’s revenue in 2011 increased by 12.9 per cent to 3.8bn euros, including gains of 9.2 per cent on services performed for other group companies and 19.2 per cent on services sold to customers outside the group.
The group said that the drive to diversify the customer base proved successful and the acquisition of a 70 per cent stake in Mercurio in May 2011 would further speed up the process.
“Excluding this acquisition, organic growth in revenues from services sold to customers outside the Group came to 12.7 per cent. Recurring operating income rose 12.6 per cent to 223m euros.”