Stellantis Issues Profit Warning Amidst Gloomy Global Auto Market

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Automotive Industry News

Stellantis,Auto Sales,Profit Warning

French-Italian automaker Stellantis has lowered its 2024 financial outlook due to anticipated lower sales and increased competition. The company cited 'deteriorating global industry dynamics' and strong competition from China as key factors.

The French-Italian conglomerate, known for brands such as Chrysler, Dodge, Jeep and Maserati, warned of lower-than-expected sales "across most regions" in the second half of the year.

It now pencils in an adjusted operating income margin between 5.5% to 7.0% for the full-year 2024 period, down from a "double digit" outlook. The Stellantis sign is seen outside the FCA Headquarters and Technology Center in Auburn Hills, Michigan, on Jan. 19, 2021.its 2024 annual guidance on the back of deteriorating "global industry dynamics" and bolstered competition from China, sending Milan-listed shares lower on open.

The French-Italian conglomerate, known for brands such as Chrysler, Dodge, Jeep and Maserati, warned of lower-than-expected sales "across most regions" in the second half of the year. It now pencils in an adjusted operating income margin between 5.5% to 7.0% for the full-year 2024 period, down from a "double digit" outlook.

It also lowered projections for its industrial free cash flow to a range between minus 5 billion euros to minus 10 billion euros, from a "positive" guidance previously, as a result of a lower anticipated adjusted operating income margin and temporarily higher working capital over the second half of this year.The Stellantis profit warning comes days after German automaker Volkswagen once more slashed its own annual outlook on Friday, now guiding for an operating return on sales of 5.

 

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