Compose your
Press kit

Total weight : 0 Mo Download

10/02/2010 | February 10th, 2010

Full Year 2009 Results: Free cash flow generation and net debt reduction


  • Positive  Free Cash Flow of €809 million in FY 2009
  • Net debt reduced by €913m to €1,993 million
  • Recurring operating loss of €689 million in FY 2009
  • Second half recurring operating income of €137 million
  • Net loss, Group share of €1,161m in FY 2009

PSA Peugeot Citroën’s 2009 financial results reflect the impact of the economic crisis, with global sales down 2.2% to 3,188,000 units in a market down 3.1%, revenues down 10.9% to €48,417 million and a recurring operating loss of €689 million for the full year.

2009 was however a highly contrasted year. The market recovery in the second half, stimulated in some countries by government incentive schemes and our successful product momentum, helped PSA Peugeot Citroën to increase its market share and to return to positive recurring operating income of €137 million after a loss in the first half. The automotive division significantly reduced its operating losses in the second half.  Faurecia recorded positive recurring operating income in the second half as the full benefits of the turnaround started to feed through. Gefco delivered strong margin growth, while Banque PSA Finance produced a further set of robust results.

As a result, PSA Peugeot Citroën generated positive Free Cash Flow of €809 million for the full year 2009 and reduced significantly its net debt to €1,993 million at 31 December 2009. Net loss, Group share amounted to €1,161 million, impacted by non-recurring operating expenses of €727 million and higher financial expenses.


 Summary income statement:

€ million

FY 2008

H1 2009

H2 2009

FY 2009






Recurring operating income/(loss)





Recurring operating margin (%)





Non- recurring operating expenses





Operating profit/(loss)


(1 332)


(1 416)

Net profit/(loss) attributable to Group




(1 161)

Earnings/(loss) per share (in euros)





 Commenting on the results,  Philippe  Varin, CEO, said:

Our financial results for 2009 show a much improved performance in the second half, but still reflect the severity of the crisis affecting the automotive industry. However, strict cash management and successful stock reduction enabled us to lower our debt substantially, reinforcing our sound financial position and giving us ample liquid resources.

 In 2010, we expect the market conditions to be challenging, with a European market down 9%, but we will benefit from our Automotive Performance Plan to drive sales, reduce costs and improve capacity utilisation. We are sustaining the momentum of our new model launches, and we should continue to grow our market shares. On this basis, we are expecting the Group’s recurring operating income to be positive in the first half of 2010.”

 Consolidated Results

  • Revenues declined  by 10.9% to €48,417 million for 2009 as a whole, from €54,356 million in 2008. After a first half revenue decline of 21.8%, the second half saw a steady improvement, with revenues up 2.6%, in the context of more favourable worldwide market conditions.


  • The recurring operating loss  in 2009 amounted  to €689 million compared  to income  of €550 million in 2008.

For the full year, the group margin on revenues remained negative at -1.4%, compared to 1% a year earlier. All activities delivered contributed to the improvement in the second half, leading the group to generate positive recurring operating income of €137 million with a margin of 0.5%, compared to a loss of €826 million in the first half.

  • Non-recurring operating expenses totalled  €727 million against €944 million in 2008.

They included €354 million of restructuring charges, €206 million due to the extension to March 2010 of the Group’s voluntary separation plan and €129 million relating to restructuring at Faurecia.  Impairment costs in the Automotive Division amounted to €217 million, all incurred in the first half.

  •  Net financial expenses totalled  €520 million versus €286 million in 2008.

This increase resulted from a marked decline in income from cash deposits, the interest costs on the government loan and higher financing costs at Faurecia.

  •  Income tax was a positive €589 million compared  to a positive €103 million in 2008.
  • This income tax credit resulted from the recognition of deferred tax assets relating to the Group’s operating losses.
  • The net loss attributable to the Group amounted  to €1,161 million for FY 2009. The loss per share for 2009 amounted  to of 5.12 euros.


 Financial  Situation

The net  debt  position of  Industrial and  Commercial businesses has  been  reduced  to €1,993 million at 31 December 2009, down from €2,906 million a year earlier.

The reduction in debt resulted from positive Free Cash Flow of €809 million, driven by the favourable impact on Working Capital of significant inventory reduction and by improved operating  cash  flow  generation,  which  more  than  offset  capitalised  R&D  and  Capital expenditure.    Trade  payables  for  2009  were  significantly  affected  by  shortened  supplier payment terms, which increased the working capital requirement of the Industrial and Commercial businesses by €1.5 billion.

Solid Financial  structure and robust  Balance Sheet.

The balance sheet of the Industrial and Commercial business at the end of 2009 was robust, with liquidity resources totalling €8.6 billion. In addition, the Group raised resources amounting to €1.3 billion to cover a 2011 bond maturity. Shareholders’ Equity stood at €12,447 million at 31 December 2009, giving a gearing ratio of 16%.

Automotive Division


€ million

FY 2008

H1 2009

H2 2009

FY 2009



18 658



Recurring operating income




(1 257)

Recurring operating margin (%)





Operating income/(loss)


(1 326)


(1 820)

  • Automobile Division revenues totalled €38,265 million in 2009, down 8.1%. New car revenues declined 9.9% from €31,642 million to €28,501 million mainly due to a 7.2% drop in sales volumes. Nevertheless, the solid sales performance from all new models helped the Group to grow its European market share to 13.7% from 13.5% in 2008. This position was further strengthened at the end of the year, with the market share of 14.3% in the fourth quarter. The Group also reinforced its position as European leader in light commercial vehicles with market share of 22.2%, up from 19.7%.
  • The division recorded a recurring operating loss of €1,257 million in 2009, compared with a loss of €225 million in 2008. The loss in the second half was much lower than in the first. The decline in volumes in the first half and the negative impact of currency resulted in a very poor operating environment which triggered fierce competition in many markets. However, performance improvements were sufficient to more than offset the negative impact of price competition.
  • Inventory was reduced 30% to 440,000 vehicles compared to 628,000 vehicles at the start of the year. This had a significant positive impact on the Group’s working capital requirement in 2009.



€ million

FY 2008

H1 2009

H2 2009

FY 2009






Recurring operating income





Recurring operating margin (%)





Consolidated profit/(loss)





  • Faurecia confirmed its turnaround in the second half of 2009 with a recurring operation margin of 1.9% at €95 million euros.
  • Cost reduction amounted to €663 million euros in 2009, above the target of the “Challenge 2009” plan, and the break-even point has been reduced by 18%.
  • Faurecia also pursued its strategic development with the acquisitions of Emcon Technologies and Plastal Germany.



€ million

FY 2008

H1 2009

H2 2009

FY 2009


3 536

1 395

1 493

2 888

Recurring operating income/(loss)





  • Gefco was affected by the worldwide decline in the automotive sector in the first half of 2009, with recurring operating income reduced to €7 million. However the rapid implementation of the “Force 10” cost-reduction program enabled the company to deliver a significant recovery in profitability in the second half.

Banque PSA Finance


€ million

FY 2008

H1 2009

H2 2009

FY 2009

Net banking revenue






2 088



1 823

Recurring operating income





  • Banque PSA Finance maintained its robust performance throughout 2009, with resilient net banking revenues and an increase in market share to 27.5% from 27.3% a year earlier. New contracts rose by 1.5%.
  • Strict credit scoring and rigorous debt recovery ensured that the bank’s cost of risk remained benchmark at 0.50% on average, showing only a marginal increase on the level at the end of 2008 (0.48%) and an improvement on the end of H1 2009 (0.53%) At the end of 2009, Banque PSA Finance enjoyed a substantial liquidity position following a number of successful refinancing initiatives. In the first half, the bank raised €1.5 billion in bond issues and €700 million from the European Central Bank following a securitization issue in Spain.
  • In the second half, the bank continued to benefit from the recovery in financial markets permitting a number of funding operations to be placed successfully. A new 2-year syndicated credit facility of €1.5 billion was signed with a pool of 12 international banks, two bond issues were placed for €500million and €750 million and Banque PSA Finance also benefited from a £420m loan from the Société de Financement de l’Economie Française (SFEF).

Outlook for 2010

The Group assumes the European automotive market will decline by some 9% in 2010.
Our European market share is expected to increase, supported by the continued momentum of new model launches. Outside Europe, Chinese market growth should remain at double-digit, while the Latin American market is expected to return to growth.

On the back of the positive impact from the automotive performance plan, the continued turnaround of Faurecia and further robust performances from Gefco and Banque PSA Finance, the Group’s recurring operating income is expected to be positive in the first half of 2010.

Related documents
1 Documents available
Full Year 2009 Results (143 Ko)
Action on the selection :
View all documents
See also :


2014 Corporate Social


Download the CSR report
Other resources

Videos, photos and press kits for media professionals

Learn more

All the videos and photos produced by PSA Peugeot Citroën 

Learn more