No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Shares in Italian-American auto giant Stellantis edged higher on Thursday after a big drop in third-quarter revenues wasn't as bad as feared, as the company works to cut inventory levels at US dealerships.
The Fiat, Chrysler, Jeep and Peugeot maker reported revenues of 33.0bn for the quarter, down 27% on last year, due to lower shipments and an unfavourable product mix, along with pricing and FX changes. Nevertheless, analysts were expecting a figure closer to 31.1bn.
Shipments were 20% lower at 1.15m due to production gaps in several models ahead of new launches, along with planned inventory reductions in North America. The company also blamed a "challenging" market environment in Europe for the year-on-year decline.
Stellantis said that US inventory levels remains "a focus priority". Inventories have been cut by 80,000 since the start of July, and the company is on track to hit its 100,000-reduction target by the end of November.
Looking ahead, the company said its so-called "product blitz" remains on track with 20 new models expected to be launched in 2024 overall.
"While Q3 2024 performance is below our potential, I'm pleased with our progress addressing operational issues, in particular US inventories, which have been reduced meaningfully and are on track for year-end targets, as well as stabilisation of US market share," said chief financial officer Doug Ostermann.
"In Europe, stringent quality requirements delayed the start of certain high-volume products, but with progress resolving challenges we will soon benefit from the significantly expanded reach our generational new product wave brings to 2025 and beyond."
The stock was up 2.6% at 12.56 by 1147 in Milan.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.