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Stellantis Revenues Rise 12% Despite Chip Crunch

Reuters2022-05-05

May 5 (Reuters) - Carmaker Stellantis said on Thursday its sales rose 12% in the first quarter, supported by strong pricing and vehicle mix and also by exchange rate tailwinds, but it sees only a partial recovery in microchip supply issues this year.

Net revenues amounted to 41.5 billion euros ($44.1 billion) in the January-March period versus 37.0 billion euro pro-forma sales a year earlier for the world's fourth largest carmaker.

The result topped analyst expectations of 36.9 billion euros, according to a Reuters poll.

Shipments however fell 12% in the quarter to 1.374 million vehicles, mainly due to the impact of unfilled semiconductor orders, Stellantis said.

The company, whose brands include Peugeot, Fiat, Jeep, Opel and Maserati, confirmed its 2022 forecasts for a double-digit adjusted operating income margin and a positive cash-flow despite supply and inflationary headwinds.

"It's important to maintain the double digit (EBIT margin) standard we have set for the company going forward and produce positive cashflows," Chief Financial Officer Richard Palmer told reporters.

"A 12 percent increase in revenue with a 12 percent decrease in volumes indicates a very strong performance on price and mix which augurs well for our margin performance," he added.

Palmer said he expected semiconductor supply would gradually improve this year and continue in 2023.

"But honestly I cannot give a date for when they (supply problems) are solved," he said.

($1 = 0.9422 euros)

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