Stellantis reported while shipments of new vehicles dropped by 12% the company’s revenue surged, climbing to $43.8 billion, increasing by 12% compared to the same period in 2021.
The automaker, which is incorporated in the Netherlands, did not report profit or loss for the quarter. Full financial results for the first half of 2022 will be reported July 28. The company’s stock rose about 5% in early trading on the news.
The revenue figure reflects strong pricing and vehicle mix, as well as favorable exchange rates. Consolidated shipments of 1.4 million units were down 12% primarily due to impact of unfilled semiconductor orders.
But the company’s total new vehicle inventory was 807,000 units as of March 31, which is basically what the company had Dec. 31, 2021.
“Net revenues were up 12% thanks to strong net pricing, favorable vehicle mix and positive foreign exchange translation effects, while shipments were down 12 percent,” Richard Palmer, Stellantis CFO said in a statement accompanying the report.
“Our full-year guidance for double-digit adjusted operating income margins and positive cash-flow is confirmed, despite supply and inflationary headwinds, as good product momentum and strategic partnerships continue to pave the way.”
But the company emphasized the results from the first quarter were driven by the company’s “successful product and technology offensive.”
Progress on strategic plan
The partial results demonstrate the ability of Stellantis to overcome the prevailing headwinds, as it carries out the Dare Forward 2030, the strategic plan for the coming decade unveiled in March, the company said.
Stellantis’ first-quarter revenues point up the strength of fresh products such as Jeep Grand Cherokee L and Wagoneer/Grand Wagoneer in North America, and the DS4, Fiat New 500, Opel Mokka, and the light commercial vehicles range in Europe.
Vehicles such as Jeep Grand Cherokee, Peugeot 3008 and Citroën C4 are proving popular with customers in the Middle East and Africa; while Fiat Pulse, Jeep Compass, Peugeot 208 and Fiat Cronos have contributed to leadership in the South America market.
Meanwhile, Stellantis low-emission-vehicle product momentum continues as the company sales of battery-electric vehicles grew by more than 50% in Europe.
During the first quarter, the company also made progress towards its planned battery capacity of 400 GWh by 2030 by executing strategic partnerships during with LG Energy Solution and Automotive Cells Co. that will respectively bring the first large scale lithium-ion battery manufacturing plant to Canada and a new battery facility to Italy.