Peugeot Citroen posts €5 billion loss as Europe's slide continues

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PARIS - PSA Peugeot Citroen says it lost €5 billion ($6.7 billion) in 2012 after Europe's cratering car maker forced France's largest automaker to take a €3 billion financial charge in its annual accounts.

The Paris-based carmaker says its annual loss, which compared to a €588 million profit in 2011, "reflects the deteriorated environment in the automotive sector in Europe."

Revenue from new vechicle sales slumped 12.4 per cent last year to €27.8 billion.

The company said falling demand and rising cost of steel and other materials led to an operating loss of €1.5 billion for its car making operations last year.

Europe's car market contracted 8.2 per cent last year to the lowest level since 1995, according to Brussels-based car industry group ACEA. The French car market slumped 13.9 per cent in 2012.

Organizations: PSA Peugeot Citroen

Geographic location: Europe, France

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