[Auto/Moto] Stellantis revenue falls 12% in first quarter on lower shipments

[-_-Moltres-_-]

 

Stellantis said its revenue fell 12 percent in the first quarter of the year on lower volumes, unfavorable product mix and foreign exchange dynamics, partly balanced by "firm" pricing power.

Consolidated shipments were down 10 percent in the quarter to 1.335 million units, Stellantis said in a statement.

CFO Natalie Knight on Tuesday said shipments and revenues were affected by the transition to the group's new product portfolio, based on new platforms, and that Stellantis was reducing inventories "to reinforce our strong relative pricing ahead of our new or mid-cycle product launches this year in key regions."

Key model transitions in Europe include new generations of the Peugeot 3008 and 5008 compact and midsize SUVs, including EV versions of both, and Citroen C3 and C3 Aircross small car and SUV, also with low-cost EV options.

Net revenue was €41.7 billion ($44.6 billion) in the January-March period, short of analyst expectations of €42.6 billion, according to a Reuters poll.

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.

'Blockbuster' model launches ahead

Knight said the group was confident that a plan for 25 new model or facelift launches during 2024, including for 18 EVs, would help Stellantis "improve its growth and profitability in the second half of the year.

In the enlarged Europe region, which includes Turkey and Eurasia, shipments were down 6 percent to 615,000, while net revenue was down 13 percent to €16.1 billion.

The lower volumes were mainly due to sales declines for the Peugeot 3008 ahead of the new model launch, the Opel Mokka small SUV and the Fiat 500, Stellantis said.

Knight affirmed Stellantis’ full-year guidance of double-digit adjusted operating income margin and positive free cash flow. She said that an accelerated schedule of product launches, including “blockbuster” models such as the Ram 1500 and Rev EV, would build momentum as the year went on.

https://europe.autonews.com/automakers/stellantis-revenue-down-12-first-quarter-shipments-fall-10?adobe_mc=MCMID%3D08698018275631728253506055223618964412|MCORGID%3D138FFF2554E6E7220A4C98C6%40AdobeOrg|TS%3D1714488424&CSAuthResp=1%3A%3A1593511%3A20608%3A24%3Asuccess%3AFD9B860A38333C86AC8E8847E613849E