|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||13.31 - 14.19|
|52-week range||8.88 - 27.06|
|Beta (5Y monthly)||N/A|
|PE ratio (TTM)||3.97|
|Earnings date||28 Jul 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||24.75|
Good shares at cheap prices are what the very best investors look for. At this time of economic turmoil and market volatility, could Peugeot Sa (EPA:UG) be one...
(Bloomberg Opinion) -- John Elkann, scion of the billionaire Agnelli clan, isn’t having an easy Covid-19 crisis. His $9 billion sale of the PartnerRE reinsurance business collapsed last week after the family’s holding company, Exor NV, refused to lower its asking price price. Then Fiat Chrysler Automobiles NV said it would scrap a proposed dividend for 2019, denying Exor another 315 million euros ($341 million) in change.And things could get worse. The terms of Fiat’s proposed merger with France’s Peugeot SA, negotiated before the coronavirus pandemic, require the Italian carmaker to pay its shareholders — the largest of whom are the Agnellis — a 5.5 billion-euro special dividend before the deal closes.The size of that payment always looked questionable, given that Fiat’s balance sheet is inferior to Peugeot’s. The Covid-19 outbreak makes it unconscionable. Having halted production, both companies are burning through cash and Fiat has had to ask Italy to guarantee a 6.3 billion-euro three-year loan to support its domestic suppliers. Surely the first priority here should be making sure the new company has strong enough finances as the economy starts to reopen.The politics of Fiat asking for help from Rome is especially awkward after the carmaker moved its tax residency to the U.K. in 2014, and its legal headquarters to the Netherlands. Last year, Italy’s competition watchdog said that the country’s tax revenues had suffered significantly as a result.Paying a fat dividend to the Agnellis and other shareholders after leaning on taxpayers probably wouldn’t go down very well with the public — as Germany’s BMW AG and other recent dividend payers have discovered. If Elkann still wants his sweetener, the two parties will need to find a way that doesn’t bleed the new merged entity of cash.Right now, money is flowing rapidly out of both companies. For the most part that’s because suppliers still need paying, even though the companies aren’t selling many cars. I’ve written before about companies suffering from these so-called negative working-capital problems.Fiat ate through 5 billion euros of cash in the first three months of 2020 and it could consume twice that in the second quarter, according to Jefferies analyst Philippe Houchois. He expects Peugeot to burn through about 8 billion euros of cash in the first half of the year.Neither company is in danger of running out of money, and those working capital-related outflows should reverse once the carmakers start producing and selling cars again. Even so, one lesson of Covid-19 is that companies need larger cash cushions. Until there’s a vaccine, there’s a risk that a second virus wave would trigger yet more industrial disruption.There’s no great urgency for Fiat and Peugeot to alter the terms of their union as the deal isn’t expected to close until early next year. The rationale for joining forces remains intact; the cost savings from working together look even more important now. But they should be thinking of ways to make the future company resilient.Structured as a 50-50 merger, Peugeot ended up paying a premium for boardroom control, as well as for the Italian company’s lucrative U.S. truck business — even though Peugeot shares had been valued more highly by the market. Some of the arguments for paying Fiat a sweetener remain valid: Peugeot’s reliance on the struggling European car market isn’t looking too attractive right now. But there are other ways to compensate Fiat shareholders. For example, Peugeot is due to spin off its 46% stake in parts supplier Faurecia SE to its shareholders as part of the original merger terms. This could be retained instead by the combined business.Without their Fiat dividends, the Agnellis will have less money to reinvest in new ventures. Right now, though, the car industry’s need is greater.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
* Countryside Properties falls to bottom of FTSE 250 Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters. You can share your thoughts Joice Alves (email@example.com) and Julien Ponthus (firstname.lastname@example.org) in London and Stefano Rebaudo (email@example.com) in Milan. On the other hand, "the pick-up in traffic congestion is not as impressive," the Swiss bank adds, since people avoid hitting the roads as they are scared of the virus.
You can share your thoughts Joice Alves (firstname.lastname@example.org) and Julien Ponthus (email@example.com) in London and Stefano Rebaudo (firstname.lastname@example.org) in Milan. Stock prices have been sliding for a few days as investors worry about a possible second wave of coronavirus infections. Investors are taking the view that the easing of lockdowns will continue in the coming weeks but they aren't ruling out a second wave of infections and potential new restrictive measures being reimposed intermittently in 2020, according to UBS' Daily Europe.
The views expressed are her own.) The World Health Organization's emergencies expert Mike Ryan has said it: "This virus may never go away." Yes, Fed chairman Jerome Powell ruled out negative interest rates but his suggestion that the Fed's firepower may not be sufficient to avert deep damage has spooked markets. Wall Street's three major indexes closed lower for the second day in a row after Powell spoke but there were other, possibly bigger, sources of concern too, not least the risk of a Trade War II – more belligerent tweets from President Donald Trump on China.
Fiat Chrysler (FCA) and PSA, which have entered into a binding merger agreement to create the world's fourth largest carmaker, said in a joint statement on Wednesday that the decision was due to the impact of the COVID-19 pandemic. A 1.1 billion euro ($1.19 billion) ordinary dividend for both FCA and PSA was announced in December as part of the binding tie-up agreement between the two automakers. FCA and PSA said on Wednesday that preparations for their planned 50-50 merger were "advancing well", including with respect to antitrust and other regulatory filings.
China's Wuhan city is considering steps to support its biggest local automaker Dongfeng Motor Corp, according to a draft policy document reviewed by Reuters, as the epicentre of China's novel coronavirus outbreak tries to revive its economy. The potential measures include subsidies for new car buyers, new government orders for Dongfeng vehicles and a plan to make use of idled plants from Dongfeng's venture with Renault, according to the policy draft by the Wuhan Economic and Technological Development Zone, a part of the city government. The proposal, dated April 28, underlines how far Wuhan is willing to go to help support Dongfeng, China's third-biggest state-owned car maker, a major employer and a banner name crucial to the city's reputation as one a major auto town.
Shares in Peugeot Sa (EPA:UG) are currently trading at 12.81 but a key question for investors is how the economic uncertainty caused by Covid-19 will affect th8230;
Like rivals across Europe and elsewhere, the Peugeot owner has shuttered plants as governments enforce lockdowns to fight the pandemic, while dealerships are also closed, grinding car sales to a halt. PSA, which also makes Citroen, DS, Opel and Vauxhall vehicles, has not yet set a date to resume production in Europe, and executives said there was no point in adding to stock levels until vendors opened again. "We want the company to be as free as possible of public dependence," Financial Chief Philippe de Rovira told analysts, adding PSA had not asked for any government-guaranteed loans.
Peugeot's <PEUP.PA> British brand Vauxhall, which operates two factories, is planning several safety measures including temperature checks, face mask-wearing and shift rescheduling to allow it to reopen sites amid the coronavirus outbreak. Britain on Thursday extended lockdown measures for at least three more weeks in a bid to contain the pandemic and all car factories remain closed. Vauxhall's north west England Ellesmere Port factory, which made just over 60,000 Astra cars last year, and its Luton van site, which produces the Vivaro, alongside other Peugeot locations in Europe, have been closed since mid March.
You can share your thoughts with Thyagaraju Adinarayan (email@example.com), Joice Alves (firstname.lastname@example.org) and Julien Ponthus (email@example.com) in London and Stefano Rebaudo (firstname.lastname@example.org) in Milan. Carmakers had a really bad time in Q1 amid pandemic-induced lockdowns and production disruptions, but liquidity risks appear to be under control, at least for the next few months. "Total liquidity and credit lines enable OEMs to last 3-12 months in a near zero production environment," Jefferies says in an equity research note.
The manufacturer said it was leading a grouping of UK suppliers to 'rapidly' develop ventilators needed to help patients with coronavirus.
Over 60 firms have offered to help in a combined effort to produce thousands of ventilators to treat coronavirus patients.
(Bloomberg Opinion) -- ↵The coronavirus will leave no industry untouched but the impact is particularly acute for companies that depend on prompt payment from customers to fund their businesses.In sectors such as car making and the travel industry, it’s common for companies to hold little inventory and settle with suppliers long after they’ve received payment from their customers.As a result they often have what’s called negative working capital: Their trade payables exceed the sum of inventories and customer receivables. In other words, they owe more to their suppliers than their customers owe them.When revenues are growing, this is a big advantage. Cash pours into the business which can be used to fund investments.Customer payments and deposits effectively serve as a free form of finance and that float gets bigger as sales expand.It’s certainly a very efficient way to run a business — Amazon.com Inc. excels at it — but negative working capital can make a balance sheet look stronger than it really is. That’s because the effect is reversed when sales suddenly slow down or shrink. Suppliers still need paying but there’s little new customer cash coming in. As a result, cash rushes out the door. This is what threatens to happen now that much of the world is cooped up at home due to coronavirus.“In periods in which our vehicle shipments decline materially we will suffer a significant negative impact on cash flow and liquidity as we continue to pay suppliers for components purchased in a high volume environment during a period in which we receive lower proceeds from vehicle shipment,” Fiat Chrysler Automobiles NV warned in its annual report. A rule of thumb is that French, Italian and U.S. automakers have negative working capital, while their German peers do not. A six-week production hiatus caused by strike action lowered General Motors Co.’s free cash flow by $5.4 billion.Optimizing working capital has been a key focus for carmaker Peugeot SA and boss Carlos Tavares repeated the trick when he acquired Opel/Vauxhall from GM.Like merger partner Fiat, Peugeot has now been forced to shutter its European car plants. If sales slump for a prolonged period, its 17 billion-euro ($19 billion) cash buffer could dwindle.Tour operators are accustomed to large swings in working capital: They typically get paid by customers ahead of the busy summer season and pay their suppliers afterwards.(1) Bank overdrafts can tide them over during the winter period when cash tends to be lower.Still, a sudden slowdown in demand can upset those calculations, as Thomas Cook Group Plc discovered last year. Customers delayed bookings, suppliers tightened credit terms and the U.K. tour operator went bust.Shares in rival TUI AG slumped this week after it suspended the vast majority of its travel, cruise and hotel operations and said it would apply for state-aid guarantees. The company has 1.4 billion euros in cash and available banking facilities but this is far exceeded by a deeply negative working capital position — at the end of December it held about 2.9 billion euros of advance payments from customers.The cash spring, once a big advantage for many firms, could be about to recoil. (1) They are however required to make pre-payments to hotelsTo contact the author of this story: Chris Bryant at email@example.comTo contact the editor responsible for this story: Chris Hughes at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Supply chains are breaking down as European countries close borders and factories to contain coronavirus.
Peugeot's British car factory will go down to a four-day working week later this month as the firm finds efficiencies in the face of a weak European car market. The northern English Ellesmere Port site built just under 62,000 Vauxhall/Opel Astra cars last year and workers are awaiting a decision on whether fresh investment will be made to keep the facility open, dependent on the outcome of Brexit. "Our plant in Ellesmere Port will run over four days per week with extended hours each day," the carmaker said in a statement.
RUEIL-MALMAISON, France (Reuters) - Peugeot boss Carlos Tavares said on Friday PSA and Fiat Chrysler (FCA) will need to review their strategy in China in order to boost sales after the closing of the merger between the two groups. PSA and FCA are hoping to finalise a $50 billion merger in early 2021 that would create the fourth-biggest car maker in the world. "We are in China to stay, we need to find a formula in order to succeed," Tavares said.
Electric cars are only bought by "green addicts" and lack broader appeal needed to reach mainstream consumers, Peugeot Chief Executive Carlos Tavares said on Tuesday. "When some markets are cancelling some subsidies, demand collapses," Tavares said about electric car sales during a conference call arranged to replace a roundtable discussion at the Geneva car show, which was canceled. "The battle from now on is that zero emission vehicles become affordable between now and 2025," Tavares said.
Peugeot Chief Executive Carlos Tavares said on Tuesday the French carmaker would adjust its partnership with China's Huawei if authorities in the United States make it a precondition for approving a merger with Fiat Chrysler. Peugeot needs the consent of U.S. authorities to complete a $50 billion merger with Fiat Chrysler at a time when Washington is urging its European allies to exclude Huawei from the continent's telecoms infrastructure.
Peugeot <PEUP.PA> could only export cars to Britain and invest in local plants if the British government helped to offset any potential tariffs imposed after the country's exit from the European Union, Chief Executive Carlos Tavares said. Britain has already left the common market but has not yet finalised an agreement to ensure ongoing tariff-free trade with the European Union, a step which has led Peugeot, which owns the Vauxhall brand, to halt investments into Britain. "We will be eager to invest in Ellesmere Port if there is a business case," Tavares said on Tuesday, referring to Vauxhall's British plant.