MILAN: Revenue for carmaker Stellantis rose 12% in the first three months of the year, supported by strong pricing and the type of vehicles sold, offsetting the impact of the semiconductor shortage on volumes.
Milan-listed shares in the company, the product of a merger last year of Fiat Chrysler and Peugeot maker PSA, gained as much as 5% in early trade, among the best performers on Italy’s blue-chip index.
Net revenues amounted to ？41.5bil (US$44.1bil or RM191.3bil) in the January-March period versus ？37bil (RM116.2bil) pro-forma sales a year earlier for the world’s fourth largest carmaker, it said.
The result topped analyst expectations of ？36.9bil (RM115.9bil), according to a Reuters poll.
The impact of the semiconductor shortage was however evident in the decline in shipment figures, which fell 12% in the quarter to 1.374 million vehicles.
It was a similar story for Germany’s BMW which posted higher revenues yesterday in the face of a decline in car sales.
Stellantis, whose brands also include Citroen, Opel, Jeep, Alfa Romeo 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 (profit margin) standard we have set for the company going forward and produce positive cashflows,” chief financial officer Richard Palmer told reporters.
“A 12% increase in revenue with a 12% decrease in volumes indicates a very strong performance on price and mix which augurs well for our margin performance,” he added.
What Stellantis calls the “Enlarged Europe” region took the largest hit in terms of volumes, with a 24% shipment fall in the first quarter, compared to last year.
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.
The company trimmed its industry-wide outlook for this year for the North American market. — Reuters