July 31, 2020 Fiat Chrysler closes the second quarter with a net loss of 1,048 billion due to the crisis of the coronavirus. Inform the Fca, noting that the group in April-June “contains the impact of the
Covid-19″. Net revenues were $ 11,707 billion, a decrease of 56%.
“Our second quarter has shown how the decisive actions and the extraordinary contribution of our people have allowed Fca to contain the impact of the crisis due to the Covid-19. While the company remains vigilant on the health and safety of our employees, our plants are now operating, the network has taken over the sales both in the offices and online, we have the flexibility and financial strength to carry forward our plans.” So the ceo of the Fca, Mike Manley, comments on the results of the second quarter. Fiat Chrysler rise in the Stock market after the communication of the results.
The Fca has closed the second quarter of 2020, as has been said, with a net loss of 1,048 billion euros and an adjusted net loss of 1,039 billion. Revenues decreased 56% to 11,707 billion. The global delivery of the overall cars are a 63% decline in 424mila unit. The figure was negatively affected by the suspension of production and the fall in the demand resulting from the pandemic.
The adjusted ebit of the group was negative for € 900 million. North America remains positive, with an adjusted ebit of € 39 million, despite a decrease in deliveries of 62%. The cash flow of operating activities is negative for 3,212 billion and free cash flow industrial was a negative 4,898 billion.
The available liquidity at the end of the quarter amounted to 17.5 billion euros, excluding the unused quota, amounting to 4.5 billion euro of the credit line of € 6.3 billion underwritten with Intesa Sanpaolo and Sace guarantee.
Forward with the merger
In the note to comment of the results of Fca in the second quarter, is also the merger with the Psa: “the crisis of The Covid-19 further underlined the strict logic of the merger between the Groupe Psa and Fca. The work of both the teams for completing the fusion is continued at a rapid pace and we expect to achieve the goal of becoming a single company within the first quarter of 2021, ” explains the Fca in a note – the approvals of antitrust have already been obtained in twelve of the twenty-two jurisdictions involved. It is not expected that the investigation launched by the European Commission may cause delays in the timing of the merger. At the beginning of July, the Fca and Psa have made a further important step by announcing the name of the new group resulting from the merger will be Stellantis”.