Revenues and operating profit fell more then expected at Stellantis in the first half due to challenging industry context and internal operational issues, especially in North America, leading the carmaker to burn cash in the period.
U.S.-listed shares of the company drop 3% in overnight trading.
Adjusted operating income (EBIT) at the world's fourth largest automaker fell 40% to 8.463 billion euros ($9.17 billion) in the January-June period, short of analysts expectations of 8.85 billion euros, according to a Reuters poll.
"The company's performance in the first half of 2024 fell short of our expectations," CEO Carlos Tavares said in a statement.
The margin on adjusted EBIT shrunk to just below 10%, at the lower end of a confirmed full-year forecast for a double-digit margin, while Stellantis free cash flow was negative for almost 400 million euros in the first half.
Stellantis full-year forecasts also include one for a positive industrial free cash flow.
Stellantis said it was taking "decisive actions to address operational challenges" and CFO Natalie Knight told a media roundtable that North American market, the group's profit powerhouse, was the market that needed the most urgent fixing.
New model launches - a total of 20 planned for this year - will also help profitability in the second half, she added.
"We are working hard to meet our fully-year (adjusted operating income margin) and to deliver positive cash flows in the second half," Knight said.
