PSA Peugeot Citroen 'Back in the Race'

"Our 2014 results show evidence that the process of rebuilding the Group's financial fundamentals is underway," said Carlos Tavares, Chairman of the PSA Peugeot Citroën Managing Board. "By generating €2.2 billion in operating Free Cash Flow² during the year, and becoming net debt free, we are ahead of our reconstruction plan. I would like to thank all of our teams for their achievements in a sometimes difficult environment. More than ever, we remain focused on fully meeting our objectives and achieving a 2% operating margin for the Automotive division."

Consolidated net revenue came to €53,607 million in 2014, up 1% over 2013. Automotive division revenue dipped 0.9% to €36,085 million, with favourable changes in the product mix and in prices offsetting a very negative currency effect.

The Group ended the year with a Recurring Operating Income ok €905 million, representing a positive swing of €1,269 million from a loss of -€364 million in 2013. The Automotive division reported Recurring Operating Income of €63 million in 2014, up €1,102 million from a loss of €1,039 million the year before. The return to profit was attributable to the positive product and price mix resulting from the success of recent launches by the brands and from the pricing power policy. It was also supported by further reductions in fixed costs.

Including its pro forma share of the 2014 income of the DPCA and CAPSA joint ventures, the Division's recurring operating income came to €366 million, an improvement of €1,246 million over the previous year.

Non-recurring operating income and expenses represented a net expense of -€682 million, primarily due to
restructuring costs incurred by the Automotive division.

Financial income and expenses represented a net financial expense of -€763 million compared with- €664 million in 2013, with the year-on-year change corresponding mainly to the non-recurring gain realised in 2013 on the sale of BNP Paribas shares.

The Group's net loss eased to -€555 million in 2014 up €1,672 million from -€2,227 million the year before.

Banque PSA Finance's recurring operating income came to €337 million, a decline of -€31 million year-on-year that was due to changes in the Bank's refinancing situation. In February 2015, the first two joint ventures with Santander Consumer Finance were launched, one in France and the other in the United Kingdom. These new entities will enable Banque PSA Finance to offer competitive interest rates to customers of the Peugeot, Citroën and DS brands while at the same time improving its margins. The start-up of operations by these new ventures also enabled Banque PSA Finance to announce that it would no longer be using the French State's guarantee for its future bond issues.

Faurecia's recurring operating income amounted to €673 million, up 25% on 2013.