Stellantis overcomes the chip crisis and closes a record six-month report. Between January and June, the group born from the merger between Fiat-Chrysler and Stellantis recorded net sales of 88 billion euros, an increase of 17% compared to the first half of 2021, and a profit of 8 billion, an increase of 34% in compared to ‘ Last year. This is due to the increase in list prices, the sale of more top-of-the-range vehicles and the positive effects of the exchange rates between the dollar and the euro. This set of factors more than offset the drop in shipments, which fell by 7% in the first half to just over 3 million units.
Stellantis’ accounts beat analysts’ forecasts. In particular, Citi and Akros were pleasantly surprised by the operating margin of 14.1% and the industrial cash flow of 5.3 billion, also achieved thanks to 3.1 billion in synergies. There is also strong industrial liquidity available, which stands at €59.7 billion. “We expect to see consensus improvement on EBIT close to double digits following these better-than-expected results,” said Citi, which has a €25 target price and a “buy” rating on the stock. For Akros, the semi-annual report will give a boost to shares that actually gain 3.8% on Piazza Affari, exceeding 13.4 euros.
The US foots the bill
As was already the case for FCA, Stellantis’ accounts were also driven by North America, where the group generated 42.4 billion in record revenue and profit with an adjusted operating profit margin (AOI) of 18.1%. Stellantis’ market share increased by 40 basis points year-on-year to 11.3%, and the US share by 50 basis points to 11.7%. “The best results were recorded despite declining group volumes (except in North America), with price mix and exchange rates more than offsetting the negative elements”, note the Equita analysts, “The main driver is still North America with revenue of +31% and adjusted EBIT + 47% to 7.68 billion (corresponding to over 60% of the total), certainly favored by the appreciation of the dollar “.
Forecast for the end of the year
In this way, Stellantis was able to confirm the forecasts for the end of the year, which foresee a double-digit adjusted operating margin and a positive industrial cash flow. In the analysts’ opinion, these are quite conservative estimates, which, however, take into account a worsening of the scenario on the global car market. The company has actually downgraded its outlook for 2022, where the North American market in particular has gone from stable to a decline of 8%, the European from -2 to -12%.
Sales of electric cars increase by 50%
Presenting the results to the market, Stellantis was keen to note the growth in sales of low-emission cars. The company ranks second in the European market for pure electric (Bev) and other low-emission vehicle (Lev) sales and third in the US market for LEV sales. Stellantis’ global BEV sales increased nearly 50% year-on-year, reaching 136,000 units in the first half of the year. The company currently offers 20 BEVs, while another 28 BEVs will be launched in 2024. By 2030, Stellantis expects to sell at least 5 million battery-powered cars annually.
The words of CEO Tavares
In a complex global context, we continue on the path of the “Give Forward” plan, achieving extraordinary achievements and implementing our ambitious electrification strategy “, emphasized the CEO of Stellantis, Carlos Tavares.” Together with the resilience, agility and entrepreneurial spirit of our people and also thanks to our innovative partners, we are transforming Stellantis into a sustainable and future-ready mobility technology company. I would like to express my sincere appreciation to all Stellanti employees for their commitment and contribution to these results”. (Reproduction reserved)