Stellantis CEO: ‘we’re well-positioned to deliver strong performance’

on Feb 23, 2022
  • Stellantis reported solid results for fiscal 2021 that handily beat Street expectations.
  • For 2022, it expects positive industrial FCF and double digits operating profit margin.
  • Shares of the world's fourth-largest automaker are up roughly 6.0% on Wednesday.

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Stellantis NV (NYSE: STLA) is up 6.0% in the stock market on Wednesday after the company reported solid results for its fiscal 2021 that handily beat Wall Street expectations.

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Stellantis’ net profit nearly tripled

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Stellantis said its full-year net profit printed at €13.4 billion ($15 billion). The world’s fourth-largest car manufacturer generated €152 billion in revenue. This compared to €11.4 billion of profit and €148.4 billion in revenue that experts had forecast.

It was the first annual report for Stellantis since its inception in early 2021 out of a merger between France’s PSA Groupe and Italian-American Fiat Chrysler. The results represent a YoY increase of 14% in revenue and close to 200% in net profit.

The stated numbers are on a pro forma basis, adjusted for the timing of the FCA-PSA combination. The earnings press release reads:

Stellantis posted record results, accelerating realisation of merger synergies and unveiled ambitious electrification and software plans in the year, with over €30 billion investments through 2025, and strong partnerships announced in battery technology, battery materials, and software development.

Impact of semiconductor shortage

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Stellantis cited favourable vehicle mix and strong pricing for the upbeat results, despite a 20% hit to its planned production due to semiconductor shortage.

Its adjusted operating margin stood at 11.8%, ahead of its own target of 10%, and well above last year’s 6.9%. All of its businesses were profitable in fiscal 2021. CEO Carlos Tavares said:

Today’s record results prove that Stellantis is well-positioned to deliver strong performance, even in the most uncertain market environments. We are focused on executing our plans as we race to become a sustainable mobility tech company.

For fiscal 2022, Stellantis expects positive industrial FCF and double digits operating profit margin (adjusted). The stock is still down more than 10% from its high in mid-January.

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