Category Archives: financial results

Beleaguered Stellantis Cuts 2024 Financial Guidance

Stellantis N.V. (NYSE: STLA) today revised its 2024 financial guidance, “reflecting decisions to significantly enlarge remediation actions on North American performance issues, as well as deterioration in global industry dynamics.” Actions include North American shipment declines of more than 200,000 vehicles in the second half of 2024 (up from 100,000 prior guidance), compared to the prior year period, increased incentives on 2024 and older model year vehicles. (Read AutoInformed.com on: Stellantis Tanks in First Half of 2024 – Net Profit -48%)*

“The Company will continue to leverage and expand its competitive differentiators and believes that the recovery actions being put in place will ensure stronger operational and financial performance in 2025 and beyond,” Stellantis said in a terse release. “Deterioration in the global industry backdrop reflects a lower 2024 market forecast than at the beginning of the period, while competitive dynamics have intensified due to both rising industry supply, as well as increased Chinese competition,” Stellantis said. Continue reading

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Magna Results Reflect Turmoil in OE EV Programs

AutoInformed notes that Magna’s challenge as a global diversified supplier to automakers going forward is adopting to and making money from the delay, elimination or reduced volumes in larger automaker EV programs while retaining or increasing sales from the now extended life of vehicles  with internal combustion engines and their potential freshening and updates with increased content that this likely entails. Continue reading

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Stellantis Pursuing Share Buy Backs?

Stellantis N.V. (NYSE: STLA) said today that pursuant to its Share Buyback Program* announced on 15 February 2024, covering up to €3 billion to be executed in the open market, it has signed a share buyback agreement for the third tranche of its Program with an investment firm that will make its trading decisions concerning the timing of purchases independently of Stellantis. This despite (or because of?) its dreadful performance thus far in 2024. Continue reading

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Penske Automotive Group Posts Lukewarm Q2 Results

“I am pleased to see that our service and parts business remains strong and contributed to our record total quarterly revenue of $7.7 billion. In addition, our focus on efficiency and controlling costs drove a sequential decline in selling, general, and administrative expenses as a percentage of gross profit by 50 basis points to 70.2%,” said Chair and CEO Roger Penske, which is more or less what he said about Q1 results. Continue reading

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Ford EVs and Quality Damage First Half Net Income and EPS

Ford Motor (NYSE: F) posted disastrous financial results this week caused by its struggling electric vehicle business and the ongoing costs of large recalls on vehicles of its past. Ford posted Q2 2024 quarter revenue of $47.8 billion, net income of $1.8 billion and adjusted EBIT of $2.8 billion (see the accompanying results chart for Q2 and combined Q1 and Q2 numbers). Leaving aside the Ford spin on the financial results for the moment, the Dearborn based automaker is haunted by its past as well as current management practices sharing a precarious future with other once formidable global legacy automakers. Continue reading

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Stellantis Tanks in First Half of 2024 – Net Profit -48%

“The Company’s performance in the first half of 2024 fell short of our expectations, reflecting both a challenging industry context as well as our own operational issues,” said Carlos Tavares, CEO. “We have significant work to do, especially in North America, to maximize our long-term potential.” Seven or more senior executives have left Stellantis so far this year. Continue reading

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GM Earns $4.4 Billion on Record Revenue – Raises Forecast

“With our new investments, we have an even stronger focus on margins and capital efficiency.,” said Mary Barra, GM Chair and CEO “It was truly a great first half. And we have the products, discipline and strategies to drive future success.” Continue reading

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VW Group – €2.6 Billion Exposure Over EV Plant Closing

In an ad hoc release late yesterday, the Volkswagen Group slashed its annual financial results forecast over the costs of the potential shutting down of an Audi EV plant in Brussels. In total, this will lead to a “burden on the operating result of up to €2.6 billion in the 2024 financial year.” Continue reading

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Stellantis Promise or Puff? – Clean, Safe, Affordable Mobility

No matter how nuanced a view you take, Jeep is central to the plan. The China Leapmotor Strategy is either daft – given the expanding global trade war with China or dictated by reality. Perhaps more significant in this moment, Stellantis re-affirmed its 2024 financial guidance and capital return plan, which promises double-digit Adjusted Operating Income (AOI) margin and positive industrial free cash flows. Stellantis will provide  ≥€7.7 billion in dividends and buybacks during 2024. Continue reading

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Honda Post Record Operating Profit of $7B in FY 24

“In FY25, we will steadily proceed with dedicating resources towards electrification and aim to achieve operating profit of ¥1 trillion 420 billion and an operating profit margin of 7%, which is one year ahead of our original target,” said Toshiro Mibe, Director, President and Executive officer. He was the first Honda chief executive in history to attend the annual results conference. Normally, the finance staff conducts it with regional operating officers. Continue reading

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Toyota Motor Posts Record FY24 Net Income of $39.1B

“We faced many challenges, including those posed by COVID-19 and production restrictions due to tight semiconductor supplies, but the results showed the efforts of each front-line employee, including those of our suppliers and dealers, each recognized what they needed to do and acted accordingly, and a management structure and profit structure that was built to be resilient to crises,” said Koji Sato, president. Continue reading

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BMW Group – Good Q1 Earnings on Slight Sales Increase

The BMW Group said today in Munich that during Q1 of 2024 it delivered 594,533 automobiles. This means, the company posted a tiny increase of 1.1% compared to the previous year. Throughout the three-month period, the major automotive markets largely showed an upward trend based on pent up demand and increased sales in the mid-price volume segment. Continue reading

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Mercedes-Benz Q1 2024 Profit Drops 25% as Sales Slump

Mercedes-Benz Group AG (MBG.DE) has reported Group Earnings Before Interest and Taxes (EBIT) of €3.9 billion (Q1 2023: €5.5 billion) a surprising drop of -25% but in line with struggles at European-based Volkswagen Group and Stellantis. Continue reading

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Penske Automotive Group 2024 Q1 Earnings Drop

“Our retail automotive service and parts revenue grew 9% to a quarterly record of $746 million. During the quarter, we experienced a recovery across our used vehicle retail automotive operations with profitability improving sequentially by $428 per unit retailed. Further, I was pleased with our focus on controlling costs as selling, general, and administrative expenses as a percentage of gross profit improved by 30 basis points sequentially to 70.7%,” said Roger Penske Chair and CEO. Continue reading

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Stellantis Q1 Revenues, Shipments Drop – Transition or Trend?

Stellantis reiterated a minimum commitment of double-digit Adjusted operating income (AOI) margin in 2024, as well as positive Industrial free cash flow, despite macroeconomic uncertainties. Stellantis claimed that it is on track to deliver total capital returns in 2024 more than €7.7 billion, for an 11% yield as a percentage of Stellantis market capitalization on 1 January 2024. It is likely that its value will go down in the short term. The company, in AutoInformed’s view is in a transition that requires the balancing of market share, product cost, revenue and development of new offerings. It is not alone among automakers. Continue reading

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