Positive accounts for FCA and PSA in 2020, which is the last year in which the two car manufacturers publish separate financial statements. Both houses, united in Stellantis since 2021, have avoided closing the year with a loss, even if the French have done better than the Italian partners: FCA was content to break even, with a net profit of just 24 million euros, while PSA declared a net profit of 2,2 billion euros. The performance on revenues and profitability was not exactly aligned either: FCA's revenues fell to 86,6 billion euros, compared to 108,1 billion euros in 2019 (-20%). The adjusted operating result was positive for 3,74 billion euros, with a contraction of 44% compared to 6,67 billion in 2019; as a result, the overall margin fell to 4,3%. Last year FCA recorded industrial free cash flow of 624 million euros, while cash flow from operating activities amounted to 9,18 billion euros. Strong recovery for FCA in the fourth quarter.
For Psa, the Peugeot group, however there was high profitability in 2020, despite Covid, with the operating margin of the Motor business at 7,1%, and in particular the record in the second half of the year with 9,4%. Group adjusted operating margin decreased by 2,4 percentage points to 6,1%. Revenues rose to 74,7 billion euros, from 60,7 billion euros in 2019. “These results demonstrate the financial solidity of Stellantis, which was born from the union of two healthy and strong Groups. Stellantis debuts with a high position and is fully focused on achieving the announced synergies”, commented Carlos Tavares, outgoing CEO of PSA and CEO of Stellantis. Investors are warmed up, with the Stellantis stock which is among the best in Piazza Affari with +2,5% in mid-morning, in particular confirmation of the 1 billion euro dividend agreed in 2020, which will be proposed to the assembly next Monday.
In the meantime, on the eve of the counts, one had arrived new appointment in the Stellantis group: the country manager for Italy is Saint Ficilli, with Fiat since 1987. During the conference call to present the financial results, the group then specified that Stellantis' first strategic plan will be presented at the end of 2021 or at the beginning of 2022 at the latest. Tavares also addressed a thanks to the workers of Psa Automobiles France, who will be recognized a prize of 430 million in total: this means a gross bonus of 3 euros per employee. "I want to express all my gratitude, my admiration and I want to tell them that they have behaved admirably," said the CEO of PSA (and now Stellantis).
The outgoing CEO of FCA Mike Manley, who will now take care of the entire American market for Stellantis, instead commented on the accounts of the Italian-American house, reiterating the "significant impact from Covid-19, but despite this, the accounts are still strong. The fourth quarter accounts more reflect the situation of the group, show the true strength of FCA. All segments of the group were profitable in the fourth quarter."
