Stellantis, price increase pushes revenues and compensates for declining sales: chips are missing

Stellaris closes the first quarter of 2022 with revenues up to 41.5 billion euros (+ 12%) and confirms the targets for the whole year, despite a 12% drop in deliveries to 1.37 million cars due to the crisis. chip that mainly hit Europe.

The decrease in sales and the increase in costs, in particular of raw materials (+ 50% equal to 3-3.5% of revenues, compared to the previous estimates of 4 billion) was offset by an increase in prices, which has had a positive impact equal to 7% of revenues and an improvement in operating efficiency. “We will be able to manage the increase in inflation and commodity prices by acting on pricing, synergies and cost reduction,” said the chief financial officer. Richard Palmerduring the presentation of the accounts.

On the supply front, especially semiconductors, visibility remains limited, but the situation could “improve in the third quarter”. The most marked impact of the lack of chips was in Europe where the group recorded a drop in shipments of 24% to 622 thousand units and revenues of 9% to 14.6 billion. A decline that led to a cut in estimates for the full year for the Enlarged Europe market: from a growth of 3% to a decline of 2%. «The order book remains very strong. The concern is more about supplies than about demand. In Europe, stocks are very low and the market share is good. We are among the most profitable brands with a 10% margin, but it is clear that we want more volumes. We will work on the launch of new products ».

Driving performance is the United States, where the group generated half of its quarterly revenues: 20.7 billion (+ 30%). Market share also increased by 30 basis points to 11.7% and deliveries by 6% to 480 thousand units. “We are very satisfied with the United States. The brands are doing well, especially Jeep, and we can grow further. But market share is not our priority, we focus on profitability and cash flow, ”said Palmer.

With the increase in the cost of money, however, the macro picture is also worsening in the United States: for this reason the group has reduced the market growth estimates for the whole year from + 3% to stable. On the other hand, the estimates for the other markets are confirmed: the Middle East and Africa area (-4% Q1 deliveries to 670 thousand units, + 7% revenues to 1.4 billion) remains stable, like China, while India is expected growth of 5% (-7% Q1 deliveries in the 2 markets plus Asia Pacific to 270 thousand units, + 8% revenues to 934 million) and South America by 3% (-8% deliveries in the first three months to 174 thousand units units, + 40% revenues to 2.95 billion).

The issue of dividing the electric car business from that of traditional cars was also discussed during the conference call. “I don’t see great benefits. To finance investments in electrification, it is better to keep the businesses together: the cash generation of traditional cars also serves to develop the electric sector ».

Source: RSS Economia by

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