MILAN — Stellantis made a quick begin in its first yr after the merger of Fiat Chrysler Cars and PSA Group, with the world’s No. 4 automaker reporting profitability and advantages from the mix that exceeded targets.
The Chrysler father or mother firm mentioned internet revenue almost tripled to $15.2 billion (all figures in USD) in 2021 whereas complete income improved 14 per cent to $172.4 billion.
Following PSA’s French reporting insurance policies, Stellantis didn’t report quarterly outcomes.
“Report outcomes show that Stellantis is properly positioned to ship sturdy efficiency, even in essentially the most unsure market environments,” CEO Carlos Tavares mentioned in an announcement on Wednesday.
Shares in Stellantis gained six per cent to $19.53 in premarket buying and selling.
The group mentioned the margin on its adjusted working revenue rose to 11.8 per cent final yr, above its goal of about 10 per cent, due to sturdy execution on synergies, which generated round $3.6 billion in internet money advantages.
Tavares subsequent week will current the group’s marketing strategy, a bit greater than a yr after Stellantis was created by way of the merger of Fiat Chrysler Cars and PSA Group.
Stellantis forecast a double-digit margin once more this yr. The professional-forma determine for 2020 was 6.9 per cent.
In North America, Stellantis mentioned adjusted working revenue rose 85 per cent to $12.8 billion. Income elevated 15 per cent to $79 billion. Margins in North America climbed to a document 16.3 per cent final yr from 10.1 per cent in 2020.
The North American outcomes generated profit-sharing for UAW members of $14,670.
“UAW Stellantis members are pleased with the product they create day-after-day particularly throughout difficult environments over the previous two years,” UAW Vice President Cindy Estrada mentioned in an announcement. “We proceed to guarantee that this dedication within the face of pandemic and unexpected components shortages is acknowledged correctly.”
UAW members at Normal Motors acquired $10,250 whereas Ford members earned $7,377.
Banca Intesa analyst Monica Bosio mentioned 2021 outcomes “materially” exceeded expectations and that steering for 2022 was primarily based on a prudent market outlook.
CFO Richard Palmer advised reporters that money synergies booked final yr put the group forward of schedule to succeed in 80 per cent of its $5.7 billion value saving run-rate goal by 2024.
He mentioned uncooked materials inflation would stay an issue for the entire trade this yr, whereas the semiconductors scarcity, which value the group about 20 per cent of its deliberate manufacturing in 2021, had peaked within the third quarter final yr.
He added that Stellantis didn’t have any vital direct publicity to Russia, which is being hit by worldwide financial sanctions over Ukraine.
“Now we have flexibility in manufacturing,” Palmer mentioned. “We’re assured we will handle the Russia disaster.”
The group, which generated an industrial free money move of over $6.8 billion final yr, proposed to pay out $3.7 billion in peculiar dividends, equal to $1.19 per share.
Tavares has to this point mapped out a $34 billion electrification technique, and shaped alliances with Amazon and iPhone assembler Foxconn to speed up growth of software program and semiconductors for future linked automobiles.
He has additionally drawn up plans for 5 battery crops and lower offers with unions to maintain streamlining its European operations — side-stepping potential labor conflicts and pushing the corporate’s working revenue margin as much as about 10 per cent.
Reuters and Philip Nussel of Automotive Information contributed to this report.