PSA's new parent company, Stellantis, announced on Wednesday the group's results for the year 2020. Finally, the automaker is in "good financial health" according to its general manager.
Despite an 18.7% decline in turnover in 2020 due to the coronavirus, PSA generated a net profit of two billion euros.
PSA recorded a turnover down 18.7% in 2020, with a net profit of two billion euros, announced Wednesday its new parent company Stellantis.
With a turnover of 60.7 billion euros, against 74 billion in 2019, the group was strongly affected by the decline in sales but managed to maintain its prices, generating a margin of 6.1% underlines the management of Stellantis in a press release.
A 27.8% drop in global sales
"The 2020 results once again demonstrate the resilience of PSA," said Carlos Tavares, former boss of PSA who has become CEO of Stellantis.
"This good financial health represents an essential contribution to the launch of Stellantis".
The manufacturer has maintained its level of profitability "despite the heavy fall in the automotive markets, and thanks to more profitable sales and savings", underlines its management.
Profits fell by 1.5 billion euros compared to 2019. Global sales of the French automaker (Peugeot, Citroën, Opel, DS) tumbled 27.8%.
Volumes fell in particular in Europe (-29.7%), where the group made nearly 85% of its deliveries, and in China (-57.7%), the world's largest market.
Fiat Chrysler also resists the health crisis
PSA presented its results on Wednesday at the same time as the Italian-American manufacturer Fiat Chrysler (FCA), its partner in the new Stellantis group, the world's fourth largest group in terms of vehicles sold.
FCA announced on Wednesday that it recorded a net profit of 24 million euros in 2020, a sign that the group has also withstood the crisis in the automotive sector caused by the coronavirus pandemic.
"These results highlight the financial solidity of Stellantis, which brings together two strong and healthy companies. Stellantis is getting off to a good start and is fully focused on achieving all of the synergies announced," said Carlos Tavares.
The new group is targeting a current operating margin between 5.5% and 7.5% in 2021, "in the absence of any significant containment linked to COVID-19".
Stellantis predicts a market rebound of 10% in Europe, 8% in North America, 20% in South America, and 5% in China.
Its board of directors has approved a distribution of one billion euros in dividends to its shareholders, subject to the approval of the general meeting scheduled for April 15, 2021. Employees will receive 430 million euros in participation and profit-sharing, i.e. 3,000 euros gross minimum per employee in France.