Stellantis posts record annual results, but semiconductor shortage is drag on output

Car manufacturer, Stellantis, which owns the Vauxhall car plant at Ellesmere Port, reported record results for 2022 today, and a share buyback worth around €1.5bn.

The Amsterdam-based 50-50 joint venture between Italian-American conglomerate Fiat Chrysler Automobiles and the French PSA Group, published full year results showing net revenues of €179.6bn, up 18% compared with 2021, reflecting strong net pricing, favourable vehicle mix and positive foreign exchange translation effects.

Net profit of €16.8bn was up by 26%.

An adjusted operating income of €23.3bn was up 29%, with 13% margin, exceeding 2030 target of up to 12%. All segments contributed to both top and bottom line growth.

Industrial free cash flows of €10.8bn were up 78%, showing early progress toward the 2030 objective of up to €20bn.

Net cash synergies of €7.1bn were more than two years ahead of the €5bn annual steady state target.

The group said it has a strong balance sheet, with Industrial available liquidity at €61.3 bn.

It announced a €4.2bn ordinary dividend, corresponding to €1.34 per share.

The board also approved a programme to buyback company shares for a value of up to €1.5bn, to be executed in the open market by the end of 2023.

Stellantis said the company gained momentum on electrification, software development and vertical integration at a pivotal time for the industry.

Chief executive, Carlos Tavares, said: “In addition to our record financial results and the focused execution of the Dare Forward 2030 strategic plan, we also demonstrated the effectiveness of our electrification strategy in Europe.

“We now have the technology, the products, the raw materials, and the full battery ecosystem to lead that same transformative journey in North America, starting with our first fully electric Ram vehicles from 2023 and Jeep from 2024.”

He added: “My deep appreciation to each and every employee, and our partners, for their contributions to a more sustainable future.”

Stellantis’s electrification push accelerated with a 41% increase in global battery electric vehicle (BEV) sales year-over-year, to 288,000 vehicles in 2022.

With 23 BEVs now in market, the BEV portfolio will more than double to 47 by the end of 2024, supporting the target to have more than 75 BEVs globally and global BEV sales of five million by 2030.