Stellantis, the Netherlands-based automaker behind popular brands like Jeep and Dodge, revealed positive results for the third quarter of the year. Despite facing production setbacks due to a six-week strike in the U.S., the company reported a rise in revenue and vehicle shipments.
Revenue Growth
- Stellantis generated €45.10 billion ($47.88 billion) in revenue during the third quarter, up from €42.10 billion in the same period last year.
- Analysts’ expectations were slightly exceeded, with estimates placing third-quarter revenue at €42.45 billion.
Factors Impacting Sales
- Improved volume and steady pricing contributed to the positive sales figures.
- However, gains were partially offset by unfavorable currency exchange rates.
Impact of U.S. Strike
- The strike in the U.S. resulted in significant production losses, amounting to approximately €3.00 billion in lost revenue for Stellantis.
- Despite this setback, Chief Financial Officer Natalie Knight emphasized that the company’s margin was only affected by under €750 million.
- Knight highlighted that Stellantis fared better than competitors Ford and General Motors, who suffered profit losses of $1.3 billion and $800 million, respectively, due to the strike.
Strong Vehicle Shipments
- Consolidated vehicle shipments saw an 11% increase, reaching 1.4 million units.
- Growth was driven by various regions, including Europe, Middle East and Africa, North America, and South America.
- The company’s total new vehicle inventory on September 30 stood at 1.4 million vehicles.
- Notably, the current inventory of 388,000 vehicles is 158,000 higher than at the end of 2022, reflecting a normalization after years of supply-chain constraints.
Future Outlook
- Stellantis reaffirmed its full-year guidance, projecting an adjusted operating income margin in the double digits and positive free cash flow.
- Additionally, investors can anticipate further details regarding cost-saving initiatives beyond the withdrawal from various trade shows.
In conclusion, despite challenges such as the U.S. strike and currency exchange rates, Stellantis achieved considerable revenue growth and increased vehicle shipments in the third quarter. The company remains optimistic about its future performance, aiming to deliver strong financial results and implement cost-saving measures.
Would you like to try out trading with an Expert Advisor?
