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Stellantis on Tuesday missed expectations with a 12% drop for its first quarter revenue, sending shares down, but said it was confident new models would support its growth and profitability in the second half of the year.
Net revenue at the Franco-Italian automaker fell to 41.7 billion euros ($44.6 billion) in the January-March period, short of analyst expectations of 42.6 billion euros, according to a Reuters poll.
Milan-listed shares were down 1.8% at opening, the worst performers among Italy's blue-chips.
Lower volumes, an unfavourable product mix and foreign exchange dynamics weighed on the result, although they were partially offset by a "firm" pricing power, Stellantis said in a statement.
Analysts at Jefferies said in a note the below-consensus revenue was mostly due to the quarterly performance in Europe, where both volume, price and product mix were worse than expected. Net pricing capacity was "more resilient" in other regions, they added.
Stellantis consolidated shipments fell 10% in the quarter to 1.335 million units, although unit sales of fully electric vehicles (EVs) were up 8%.
NEW PRODUCTS
CFO Natalie Knight said shipments and revenues were impacted by the transition to the group's new product portfolio, based on new platforms.
"We are reducing inventories to reinforce our strong relative pricing ahead of our new or mid-cycle product launches this year in key regions," she said.
Stellantis, whose brands include Peugeot, Fiat, Jeep and Alfa Romeo, has launched four new models since the beginning of 2024, out of a total of 25 planned for the full year, including 18 EVs.
Among new launches Knight cited was the RAM 1500 truck, out now, and during the year Stellantis will release models including low-cost EV Citroen eC3, Peugeot E3008 EV SUV and Jeep's Wagoneer S in the United States.
"Those are blockbuster products for us," she said, adding that the group was confident that the new model roll-out plan "sets the stage for materially improved growth and profitability in the second half of the year".
Stellantis on Tuesday confirmed a 2024 forecast for a double digit margin on adjusted operating income (EBIT) and for a positive industrial free cash flow.
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