Stellantis 3Q Revenue, Shipment Rose But Strike Cost $3.18 Billion in Sales -- Update

By David Sachs

Stellantis's third-quarter revenue and vehicle shipments rose but said that lost production from the strike in the U.S. translated to a significant sales hit.

The Netherlands-based maker of Jeep, Dodge and a dozen other brands said on Tuesday that revenue reached 45.10 billion euros ($47.88 billion) compared with EUR42.10 billion in the third quarter of last year. Analysts had expected third-quarter revenue at EUR42.45 billion, according to FactSet.

Sales figures reflect improved volume and steady pricing but gains were partially offset by currency exchange rates, the company said.

Production losses from the six-week strike in the U.S., which is now on hold, equated to around EUR3.00 billion in lost revenue, Stellantis said. The effect of the strike on the company's margin was under EUR750 million, Chief Financial Officer Natalie Knight said in a post-earnings call with reporters. She noted that the hit is lower than the ones absorbed by competitors Ford and General Motors, which reported $1.3 billion and $800 million profit losses, respectively, due to the strike.

"For us, we are a big global company, so [North America] is part of the scheme but it's very different than what it is for our competitors," Knight said.

Consolidated vehicle shipments rose 11% to 1.4 million, driven by growth in the Europe, Middle East and Africa, North America, and South America regions, Stellantis said. Total new vehicle inventory stood at 1.4 million vehicles on Sept. 30. The company's inventory of 388,000 vehicles was 158,000 higher than it was at the end of 2022 because of what the company called a normalization after years of supply-chain constraints.

Stellantis confirmed its full-year guidance of an adjusted operating income margin in the double digits and positive free cash flow.

Knight also said investors can expect to hear more about cost-savings measures beyond pulling out of various trade shows, measures that were previously announced.

Write to David Sachs at [e-mail]

(END) Dow Jones Newswires

October 31, 2023 04:17 ET (08:17 GMT)

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