Stellantis Shares Rise After Strong 2021 Results
February 23 2022 - 6:41AM
Dow Jones News
By Kim Richters
Shares in Stellantis NV traded higher on Wednesday after the car
maker posted strong results and beat its profitability target for
2021.
The car maker--created last year when Fiat Chrysler and Peugeot
maker PSA Group merged--said revenue and earnings in its first year
as a combined company were boosted by strong pricing and a
favorable vehicle mix, while it was able to accelerate synergies
from the merger.
However, the semiconductor shortage led to a cut in planned
production of around 20%, it said.
Stellantis's full-year revenue rose to 152.12 billion euros
($172.27 billion) from EUR133.88 billion while adjusted operating
profit almost doubled to EUR18.01 billion from EUR9.22 billion. Its
adjusted operating profit margin was 11.8% in 2021, beating the
company target of around 10%. The figures are on a pro forma basis,
adjusting for the timing of the merger.
"We see the strong print as a positive demonstration of margin
resilience and progress on synergy targets that could drive
consensus upgrades," Citi said.
At 1109 GMT, Stellantis shares were up 6% at EUR17.32 on the
stock exchange in Milan, Italy.
For 2022, the company said it is targeting an adjusted operating
profit margin in double digits and a positive industrial free cash
flow. RBC Capital Markets said the margin target is in line with
consensus expectations but that the cash-flow target is especially
vague and "more concerning."
The car maker plans to present an update on its strategy next
week.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
February 23, 2022 06:26 ET (11:26 GMT)
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