Stellantis H1 Results Down, Backs FY24 View; Stock Down In Pre-market

(RTTNews) - Automotive major Stellantis N.V. (STLA) reported Thursday weak profit and net revenues in its first half, primarily due to the decline in volume and mix. Further, the company reiterated financial guidance of double-digit AOI margin in 2024.

In pre-market activity on the NYSE, Stellantis shares were losing around 7 percent to trade at $18.21.

Net profit for the period dropped 48 percent to 5.65 billion euros from last year's 10.92 billion euros. Adjusted earnings per share decreased 35 percent.

Adjusted operating income or AOI dropped 40 percent to 8.46 billion euros, and AOI margin fell to 10 percent from 14.4 percent last year, primarily due to decreases in North America.

Net revenues were 85.02 billion euros, down 14 percent from last year's 98.37 billion euros.

According to the firm, weak performance in the first half was driven principally by lower volumes and mix, with the challenging volume comparison due to a combination of inventory reduction initiatives, temporary product production gaps due to a generational portfolio transition, and lower market share particularly in North America.

Carlos Tavares, CEO, said, "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 also have 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."

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