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Stellantis profitability beats target after merger

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Stellantis said raw material inflation would remain a problem for the whole industry this year, while the semiconductors shortage, which cost the group around 20% of its planned production in 2021, had peaked in the third quarter of last year.

"Record results prove that Stellantis is well positioned to deliver strong performance, even in the most uncertain market environments," chief executive Carlos Tavares said.

Its chief financial officer Richard Palmer told reporters that cash synergies booked last year put the group ahead of schedule to reach 80% of its €5 billion cost saving target by 2024. He added Stellantis did not have any significant direct exposure to Russia, which is being hit be international economic sanctions over Ukraine.The group, which generated an industrial free cash flow of over €6 billion last year, proposed to pay out €3.3 billion in ordinary dividends, equal to €1.05 per share.

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