Stellantis* today posted a pre-tax operating profit of €3 billion. The company that is partly comprised of Jeep, Dodge Jeep and Ram said the strikes cost it around €750 million. However the strikes – characterized as “work stoppages”- resulted in ~$4 billion in lost sales.** Chrysler, Dodge Fiat, Jeep and Ram nonetheless reported a 7% increase in net revenue from quarter-over-quarter (YoY)at $48.1 billion. Stellantis said increased shipments, more inventory, better supply chain access and pricing were partially offset by foreign exchange rates.
“In the first half of this year, Stellantis emerged as the industry leader for AOI (Automotive Operating Income), AOI margin, and Industrial Free Cash Flows among comparable peers. Today, we are focused on maintaining our momentum by delivering industry-leading profitability and cash flows, addressing critical near-term industry challenges, and continuing our electrification and technology transformation. This growth is propelling the execution of our Dare Forward 2030 strategy,” said Natalie Knight, Stellantis chief financial officer, who has been in the job ~100 days.
Click to enlarge.
AutoInformed notes that Stellantis confirmed it financial guidance “where we intend to deliver diligent adjusted operating income margins both in Q4 and for the full year.” It is currently working at a ~11% margin. The work stoppage costs and future investments to support strategies will eventually appear in the operating results and on the balance sheet.
Knight was refreshingly candid about the opportunity to move from a “defensive or safety first balance sheet toward one that aggressively takes advantage of the opportunities presented by the huge cash flows the business is generating – starting with higher and better profitability.”
Stellantis Q3
- Net revenues of €45.1 billion, up 7% compared to Q3 2022, mainly reflecting improved volume and consistent pricing, partially offset by foreign exchange impacts.
- Consolidated shipments(1) of 1,427,000 units, up 11% versus Q3 2022, with Enlarged Europe, Middle East & Africa, North America and South America reporting year-over-year improvements.
- Total new vehicle inventory of 1,387,000 units at September 30, 2023. Company inventory of 388,000 units, up 158,000 units from December 31, 2022 reflecting a return to more normal levels after a multi-year period of materially constrained supplies.
- Tentative agreement reached with both UAW and Unifor. Work stoppages negatively impacted Net revenues by ~€3 billion, compared to planned production, through October.
- Global BEV sales up 37% versus Q3 2022 mainly from the Jeep® Avenger and growing commercial BEV vehicles sales, led by the Citroën ë-Berlingo.
- Stellantis repurchased €0.5 billion in shares during Q3 2023. During the nine months ended September 30, 2023, €1.2 billion in shares were repurchased. It expects to complete the announced €1.5 billion 2023 Share Buyback Program during Q4 2023.
Stellantis said it continued to strengthen its global electrification ecosystem and support its carbon neutrality ambitions:
- Concluding testing with Aramco on the compatibility of 24 engine families to use advanced drop-in eFuels, which will lower CO2 emissions of a potential 28 million Stellantis vehicles currently on the road;
- Unveiling with Saft the Intelligent Battery Integrated System, which the project team intends to make commercially available on Stellantis vehicles before the end of this decade;
- Announcing plans for a sixth gigafactory globally to support its bold electrification plan of securing approximately 400 GWh of battery capacity; it will be the second facility to be built in the U.S. with Samsung SDI;
- Investing in Controlled Thermal Resources Holdings Inc.’s Hell’s Kitchen project to produce up to 300,000 metric tons of lithium carbonate equivalent each year; and (v) completing its 33.3% purchase of Symbio, a leader in zero-emission hydrogen mobility to help secure Stellantis ‘leadership position in hydrogen-powered vehicles.
* Stellantis N.V. (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP)
** AutoInformed on
Stellantis Posts Q3 Sales Up 37%. Pre-Tax Profit €3B
Stellantis* today posted a pre-tax operating profit of €3 billion. The company that is partly comprised of Jeep, Dodge Jeep and Ram said the strikes cost it around €750 million. However the strikes – characterized as “work stoppages”- resulted in ~$4 billion in lost sales.** Chrysler, Dodge Fiat, Jeep and Ram nonetheless reported a 7% increase in net revenue from quarter-over-quarter (YoY)at $48.1 billion. Stellantis said increased shipments, more inventory, better supply chain access and pricing were partially offset by foreign exchange rates.
“In the first half of this year, Stellantis emerged as the industry leader for AOI (Automotive Operating Income), AOI margin, and Industrial Free Cash Flows among comparable peers. Today, we are focused on maintaining our momentum by delivering industry-leading profitability and cash flows, addressing critical near-term industry challenges, and continuing our electrification and technology transformation. This growth is propelling the execution of our Dare Forward 2030 strategy,” said Natalie Knight, Stellantis chief financial officer, who has been in the job ~100 days.
Click to enlarge.
AutoInformed notes that Stellantis confirmed it financial guidance “where we intend to deliver diligent adjusted operating income margins both in Q4 and for the full year.” It is currently working at a ~11% margin. The work stoppage costs and future investments to support strategies will eventually appear in the operating results and on the balance sheet.
Knight was refreshingly candid about the opportunity to move from a “defensive or safety first balance sheet toward one that aggressively takes advantage of the opportunities presented by the huge cash flows the business is generating – starting with higher and better profitability.”
Stellantis Q3
Stellantis said it continued to strengthen its global electrification ecosystem and support its carbon neutrality ambitions:
* Stellantis N.V. (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP)
** AutoInformed on