Stellantis, the world’s fourth-biggest automaker, on Thursday reported net income of 8 billion euros for the first half, a 34% increase from a year earlier.
Stellantis goes from record to record. After the record results for 2021, the group consisting of PSA and Fiat Chrysler published new record results for the first half of the year on Thursday. The world’s fourth-largest automaker announced net profit of 8 billion euros, up 34% in one year.
All traffic lights are green, notably with sales up 17% to €88 billion, operating income up 44% to €12.4 billion and “free cash flow” at €5.3 billion, enough to give investors one Automobiles to calm market severely slowed down by shortage of electronic chips. However, the group suffered a 7% drop in global sales, particularly affected by the collapse of the European market.
But one number stands out in particular, that of operating margin for the first half of the year: It reached 14.1%, or nearly 2.5 points more than last year, which was already an exceptional year. This margin flirts above all with that of premium brands: Mercedes announced a total margin of just over 15% yesterday.
These good results come in particular from the American market, where both sales and the operating result have risen sharply. Vehicle prices and sales have simultaneously exploded locally, with even higher margins to 18.1%.
Rising prices, electric vehicles
In this context, the result for the first half of the year reflects rising prices, higher sales and positive exchange rate effects, the group said in a press release.
The group also saw a 50 percent increase in its electric car sales, with 136,000 units sold worldwide. Stellantis had already posted huge gains in its first year of existence in 2021, with an operating margin of 11.8% versus 10% expected and net income of €13.4 billion.
declines in sales volume
After the severe slump in the European automotive market in the first half of the year, the group has revised its sales forecasts for 2022 significantly downwards. He expects volume down 12% in Europe, 8% in North America, stable sales in the US, Middle East, Africa and South America. The forecasts for China (stable) and India-Asia-Pacific (+5%) remain unchanged.