The Stellantis sign is seen outside the FCA Headquarters and Technology Center in Auburn Hills, Michigan, on January 19, 2021.
Jeff Kowalski Afp | Getty Images
Stellantis on Monday cut its 2024 annual guidance on deteriorating “global industry dynamics” and strengthening competition from China, sending Milan-listed shares lower.
The French-Italian conglomerate, known for brands such as Chrysler, Dodge, Jeep and Maserati, warned of lower-than-expected sales “in most areas” in the second half of the year. Now pencil in the operating income margin (AOI) which is set between 5.5% and 7.0% for the full period of 2024, down from the “double digit” prospect.
It also lowered the industry’s free cash flow projection to a range between minus 5 billion euros ($5.58 billion) and minus 10 billion euros, from previous “positive” guidance, as a result of lower anticipated operating income (AOI) margins. and higher working capital for the second half of the year.
The carmaker was down 9% at 08:20 am London time.
Stellantis’ profit warning comes days after German automaker Volkswagen again cut its own annual outlook on Friday, now guiding for an operating profit return of 5.6% in 2024, from a previous range of 6.5-7.0%.
In a stock exchange filing translated by Google, it stated that the projections were lowered due to lagging developments in the passenger car and commercial vehicle brands, together with “the deterioration of the macroeconomic environment, resulting in more risks, especially for the core brand group.”
This news item is being updated.
