Click to Enlarge.
The creation of Stellantis N.V. by merging Fiat Chrysler and Peugeot occurred in January and created the world’s fourth largest automaker. It has posted financial results of the legacy operations – FCA and PSA – for the year ended December 31, 2020. Group revenue amounted to €60,734 million in 2020, down by -18.7% compared to 2019. Automotive revenue amounted to €47,613 million down by -19.2% versus 2019, mainly from the negative impact of volumes and country mix (-23.9%), the impact of exchange rates (-1.8%) and the decrease of sales to partners (-0.3%); conversely, revenues benefited from the positive effect of product mix (+4.2%) and price (+0.9%), as well as others (+1.7%).
Nonetheless, what is now Stellantis was profitable in 2020 despite COVID-19 with 7.1% Automotive adjusted operating margin at €3.4 billion. Its 9.4% H2 Automotive adjusted operating margin was a record. The net result of group share was €2.2 billion with €2.7 billion Automotive free cash flow and a €13.2 billion Automotive net financial position.
The automaker’s adjusted earnings before interest and taxes fell 44% to €3.7 billion, beating its forecast issued in October €3.5 billion. Industrial free cash flow was €624 million euros. Fiat Chrysler beat projections for fourth-quarter vehicle sales in the U.S., even though deliveries fell below the previous year. The company said Ram had its best retail month ever in December. Europe is among the least-profitable markets for Fiat Chrysler, the opposite of Peugeot. In recent meetings with Italian unions, Tavares noted higher costs related to bureaucracy and taxation. Overall production costs in Italy are greater than in France, he said last month, indicating an overhaul is likely coming where Fiat has a long history and long-standing traditions.
PSA
PSA Group’s profitability in 2020 beat a longstanding target, indicating the automaker survived the coronavirus pandemic that thrashed sales. PSA posted an automotive adjusted operating margin of 7.1%, better than the stated goal for an average of +4.5% for 2019 to 2021. It was + 9.4% in Q3-4 of 2020. The maker of Peugeot, Citroen, Vauxhall and Opel vehicles rebuffed the downturn in its largest market, Europe. This as new-vehicle registrations in the region sunk 24% during 2020, a record drop.
Carlos Tavares, CEO Stellantis said: “2020 strong results have proven once again Groupe PSA’s resilience thanks to both the rigorous execution of the Push to Pass strategic plan and the agility and fighting spirit of the teams to push forward efficiency against headwinds. Groupe PSA sustainable financial results represent a key contribution to Stellantis launch, aiming at providing a clean, safe and affordable mobility as well as added value to all its external stakeholders and employees.”
Stellantis has also announced distribution of the stake it still holds in auto parts maker Faurecia to its shareholders. Stellantis shareholders will decide on the distribution of the shares and up to €308 million ($368.46 million) raised from a previous equity sale in Faurecia. The stake in Faurecia was previously held by the former PSA.
FCA
Fiat Chrysler’s 2020 earnings topped its own projections, aided by Ram truck sales in North America and government incentives in Italy and Germany that spurred purchases during Q4. FCA reported record fourth quarter Group and North America results, with Adjusted EBIT of €2.3B and €2.2B and margins of 8.2% and 11.6%, respectively. All regions and Maserati were profitable. Net profit and Adjusted net profit of €1.6B and €1.8B, respectively. Industrial free cash flows of €3.9B for Q4 and positive for the full year at €0.6B.
Stellantis N.V. (NYSE / MTA / Euronext Paris: STLA) (“Stellantis”) announces that the Extraordinary General Meeting of Shareholders held today has approved the already announced conditional distribution (the “Distribution”), pursuant to a capital reduction, by Stellantis to the holders of its common shares of up to 54,297,006 ordinary shares of Faurecia S.E. (“Faurecia”) and up to €308 million in cash, being the proceeds received by Peugeot S.A. from the sale of ordinary shares of Faurecia in October 2020.
Payment of the Distribution remains conditional upon the further announcement, which is expected to occur in the next few days, that certain Dutch law formalities have been complied with. Absent such announcement that the Distribution has become unconditional, no Distribution will be payable.
Additional information related to the Distribution has been made available on the Investors section of the website of Stellantis at http://www.stellantis.com, including an Information Statement available at http://www.stellantis.com/en/investors/stock-and-shareholder-info/egm-8-march-2021 and submitted to the U.S. Securities and Exchange Commission on Form 6-K on March 5, 2021.