French-Italian-American automotive giant Stellantis released its first half 2024 earnings on Thursday, reporting a net profit of €5.6bn, which was 48% less than the first half of 2023. Net revenue for the first half of the year was €85bn, which was 14% less than the corresponding period last year.
ADVERTISEMENTThe adjusted operating income (AOI) was €8.5bn for H1 2024, which was €5.7bn lower than the first half of 2023, with the AOI margin for H1 2024 being 10%. The margin was supported by decreases in workforce, direct materials and logistics costs.
Stellantis’ management has also reassured investors that it is taking comprehensive actions to deal with operational issues, which include inventory performance and North American share price movements.
Total inventory fell 3% in H1 2024, to 1,408,000 units. The company also revealed that it has returned €6.7bn in capital in the first half of the year, which was primarily boosted by Stellantis quickening its €3.0bn share buyback agenda for the year.
The disappointing financial performance in H1 2024 was mainly because of falling volumes and product mix, along with efforts to reduce inventory. A generational portfolio change also led to mild production disruptions. Stellantis’ North American market share has also been suffering recently.
Carlos Tavares, the chief executive officer (CEO) of Stellantis said in a statement: “The company’s performance in the first half of 2024 fell short of our expectations, reflecting both a challenging industry context, as well as our own operational issues.
“While corrective actions were needed and are being taken to address these issues, we have also initiated an exciting product blitz, with no fewer than 20 new vehicles launching this year, and with that brings bigger opportunities when we execute well. We have significant work to do, especially in North America, to maximise our long-term potential.”
Stellantis announces 20 new products for 2024
Stellantis also revealed that it was planning 20 product launches for this year, including 10 which are already in the manufacturing process. Amongst these are the Peugeot 3008 and 5008, which will have the new Panoramic i-Cockpit, along with ChatGPT being included in the software.
The company also launched a new Lancia Ypsilon, which will be a premium hatchback and feature innovative Italian automotive design. The Maserati Grecale Folgore has also been launched, along with the Ram 1500, Citroen Basalt and Stellantis Pro One Vans.
Stellantis also reiterated its financial guidance and outlook for the rest of the year, expecting a positive industrial free cash flow and a double-digit adjusted operating income margin, despite economic and geopolitical turbulence.
