FCA reports strong full year 2019 results, with Net profit from continuing operations of €2.7 billion, Adjusted net profit of €4.3 billion, Adjusted EBIT of €6.7 billion and 6.2% margin, with record North America results and margin. Industrial free cash flows at €2.1 billion.
During 2019, FCA delivered on its commitment to continued shareholder value generation as record North America and improved Latin America results led to strong Group performance, with Adjusted EBIT margin reaching 6.2 percent.
The Ram and Jeep brands drove North American results as strong sales of the all-new Ram Heavy-Duty, Ram 1500 and Ram 1500 Classic resulted in record Ram brand sales in the U.S., up 18%. The successful launch of the all-new Jeep Gladiator, which was recently named the 2020 North American Truck of the Year, was also a key factor in delivering record results in North America. In Latin America, positive performance in Brazil more than offset headwinds from weak market conditions in Argentina and other countries in the region. Strong operating performance drove Industrial free cash flows of €2.1 billion.
In addition to continued strong performance, the Group reinstated shareholder remuneration with the commencement of an ordinary annual dividend and the payment of an extraordinary dividend upon completing the sale of Magneti Marelli in Q2 2019.
FCA also took numerous actions during the year to lay the groundwork for continued value creation. In Q1, we committed investments to expand production capacity in Michigan for the next generation Jeep Grand Cherokee, all-new Jeep Wagoneer and Grand Wagoneer and an all- new three-row full-size Jeep SUV. In Q2, we executed partnership agreements with Enel X and ENGIE Group to develop e-mobility solutions for electrified vehicles in Europe. In Q3, we announced plans to renew, expand and electrify the Maserati product portfolio. In Q4, we entered into an agreement to sell the Group’s cast iron automotive components business operated through our subsidiary, Teksid S.p.A.
Finally, FCA and Groupe PSA agreed to a 50/50 merger that will create a leading global mobility company. The merger, which is expected to close at the end of 2020 or early 2021, is expected to generate approximately €3.7 billion of annual synergies at run-rate.
FCA expects continued strong performance in 2020 and confirms guidance:
• Adjusted EBIT >€7.0 billion
• Adjusted diluted EPS >€2.80
• Industrial free cash flows >€2.0 billion
To see the full release, click here
