by Gilles Guillaume and Giulio Piovaccari
Stellantis expects profitability at the lower end of its forecast range in the first half, after a first quarter at half-mast for turnover while waiting for the new models to improve sales and margin in the second part of the year. ‘year.
Natalie Knight, financial director of the automaker born from the merger between PSA and FCA, told analysts on Tuesday that she was “fully committed” to the objective of a double-digit adjusted operating margin for the whole year.
But it clarified that over the first half of 2024, this margin was expected in a range of 10-11%, “largely reflecting the lower starting point on turnover and an unfavorable regional mix for first half, combined with persistent headwinds on foreign exchange.”
The group, one of the most profitable in the sector, lost 8% on the Milan Stock Exchange around 4:20 p.m., signing the worst performance of the Italian index of the main stocks.
Stellantis had posted an adjusted operating margin of 12.8% in 2023.
Natalie Knight added that she sees opportunities to improve profitability in the second half and expects the positive impact of a wave of new models.
“Every major month of the year, there will be a product coming out of our country,” she said, this time during a press conference call.
ANOTHER 21 NEW ITEMS TO COME
Stellantis plans to launch no fewer than 25 new models – including 18 electric – in 2024, including potential best-sellers like the Citroën e-C3 and Peugeot e-3008 at the end of the second quarter, the Jeep Wagoneer S and Dodge Charger at third and the Ram Rev in fourth. Only four new products out of 25 have been launched to date.
The financial director, however, warned that this transition to this new portfolio would weigh on cash generation.
Stellantis reported on Tuesday a 12% drop in its net turnover in the first quarter to 41.7 billion euros, a drop in volumes attributable to destocking before the arrival of new vehicles and the effects of unfavorable exchange rates being partly offset by price increases.
Its deliveries over the quarter fell by 10% to 1,335,000 vehicles. Its turnover is lower than analysts’ expectations, which gave 42.6 billion euros according to a Reuters consensus.
“The weaker than expected performance came mainly from Europe, where volumes and price mix were both lower than expected, while net prices held up better in other regions,” comments Philippe Houchois, of Jefferies, in a note.
A Stellantis spokesperson also indicated that the three European factories whose production has been stopped for around a week due to a strike at a supplier would restart on Thursday for the Poissy site (Yvelines) and next Tuesday for the factories in Hordain (North) and Luton (Great Britain).
“We have our own sourcing, we do stamping (…) so we do it internally and have our own system that allows us to supply these factories,” the spokesperson said.
He did not give any further details on the evolution of the social conflict on the MA France site in Aulnay-sous-Bois (Seine-Saint-Denis), located not far from the former assembly plant of PSA, closed in 2014.
(Report by Gilles Guillaume and Giulio Piovaccari, edited by Blandine Hénault, Nicolas Delame and Kate Entringer)
