Cars Fiat-Chrysler: more than a billion euros loss in the second quarter, before its merger with PSA

17:41  31 july  2020
17:41  31 july  2020 Source:   latribune.fr

Thyssenkrupp reports loss of billions

 Thyssenkrupp reports loss of billions © FRIEDEMANN VOGEL / EPA-EFE / REX The corona crisis is adding to Thyssenkrupp: The steel company in the crisis made a loss of 1.3 billion euros in the first half of its fiscal year. For the time being, there is no improvement in sight. The troubled steel and industrial group Thyssenkrupp slipped even deeper into the loss zone in the second quarter of the 2019/20 fiscal year running until the end of September.

  Fiat-Chrysler: plus d'un milliard d'euros de perte au deuxième trimestre, avant sa fusion avec PSA © Supplied by La Tribune

The Italian-American manufacturer Fiat Chrysler, which is to merge with the French PSA, has recorded a net loss of 1.04 billion euros in the second quarter, according to a press release published on Friday, victim of the collapse of the world market caused by the coronavirus epidemic.

This result is nevertheless better than expected. Analysts were indeed expecting a net loss of 2 billion euros, according to financial information provider Factset Estimates.

Read also: Fiat Chrysler negotiates a loan of 6.3 billion euros guaranteed by the Italian state

The annual turnover of the group, which includes the brands Fiat, Chrysler, Jeep, Maserati, Alfa Romeo, Dodge and Ram, he collapsed 56% to 11.7 billion euros, a result this time less good than expected (14 billion euros).

Inditex slips into the red due to Corona - share nevertheless increases slightly

 Inditex slips into the red due to Corona - share nevertheless increases slightly Inditex felt the effects of the Corona pandemic strongly in the first business quarter and posted operational and bottom line red numbers. © Provided by Finanz.net GmbH Hannelore Foerster / Getty Images Expenses for optimizing the store portfolio exacerbated the loss of the Spanish textile retail chain with brands such as Zara, Pull & Bear, Massimo Dutti and Bershka. Inditex will propose to the Annual General Meeting a dividend of EUR 0.35 per share for the 2019 financial year, which is to be d

In May, FCA CFO Richard Palmer predicted the second quarter would be the worst of the year, after the group recorded a net loss of 1.7 billion euros and a decline of 16% of its sales in the first quarter.

"Our second quarter showed how the decisive actions taken and the extraordinary contribution of people have helped contain the impact of the Covid-19 crisis," commented FCA boss Mike Manley, quoted in the press release.

"While the company remains vigilant on the health and safety of its employees, our factories (closed for a while due to containment measures taken across the world, editor's note) are now operational, the network has resumed sales as in stores than online and we have the flexibility and the financial strength to move our plans forward, ”he added.

No merger between Fiat Chrysler and PSA for the time being.

 No merger between Fiat Chrysler and PSA for the time being. © Provided by Euronews The EU Commission wants to review the planned merger of the car manufacturer Fiat Chrysler with the Opel parent PSA. It is feared that the merger of the two vehicle manufacturers could restrict competition in the van market. It is therefore possible that the case will continue until October 22nd. PSA and Fiat Chrysler decided to merge in December. A merger would create the fourth largest automaker in the world.

From April to June, FCA sold 424,000 vehicles around the world, a figure down 63% over one year. Fiat Chrysler, which is engaged in a merger process with the French PSA, confirmed that their objective was to complete this transaction "by the end of the first quarter of 2021".

"The Covid-19 crisis has further underlined the logic of the merger between PSA and FCA. The work of the two teams to complete the merger has continued at a steady pace," said the Italian-American manufacturer .

"The green lights from the authorities have already been obtained in 12 of the 22 jurisdictions concerned. The investigation launched by the European Commission should not cause any delay in the timetable for the merger," he said. This merger should give birth to the world's third largest manufacturer in terms of turnover. The new group will be called "Stellantis".

Read also: PSA-FCA: the new Alstom-Siemens affair?

Merck shares a little lighter: Merck is somewhat more optimistic on earnings outlook after the second quarter .
The pharmaceutical and specialty chemicals group Merck earned over a third less in the second quarter. © Provided by Finanz.net GmbH PHILIPPE HUGUEN / AFP / Getty Images The effects of the Covid-19 pandemic were felt in all areas, with healthcare and performance materials being the hardest hit, as Merck KGaA announced. With a view to the full year, the Group has adjusted its forecast slightly and is now expecting slight to moderate organic growth in both sales and adjusted operating profit.

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