Stellantis beats revenue forecast, weathers worsening chip shortage on higher prices

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Stellantis beats revenue forecast, weathers worsening chip shortage on higher prices

Later this week, Stellantis NV, the Amsterdam-based multinational automotive giant formed on January 16 this year following a $52-billion cross-border merger between Italian-American Fiat Chryslers and French carmaker Groupe PSA, had revealed its quarterly earnings’ report for fiscal first quarter of 2021 and handily beaten analysts’ estimates for quarterly revenues, as the world’s fourth-largest carmaker by market valuation appears to have eclipsed the fiscal impacts of a worsening global chip shortage in the latest quarter.

Aside from that, speaking in a post-earnings conference call, Stellantis CFO (Chief Financial Officer) Richard Palmer was quoted saying that the carmaker had been expecting to meet Europe’s carbon-emission target this year without purchasing e-vehicle trailblazer Tesla Inc’s environmental credits, lifting the Paris-listed shares’ prices of Stellantis NV just a notch shy of 8 per cent to €14.94 last week.

Besides, addressing to a shimmering ray of hope over an ongoing global-scale chip shortage which had forced a number of top-tier US carmaker to curb outputs, Palmer said that the chip shortage would likely to ease in the second half of the year, though, had also raised a red-flag over global automotive industry saying that a wide-spread supply chain disruption would likely to persist at least until mid-2022.

Stellantis beats revenue forecasts, raises full-year earnings forecast

More importantly, Stellantis’ upbeat quarterly earnings’ report for January-to-March quarter came forth as a number of carmakers across the globe had been caught in the crosshairs of a vital shortage of chips, which reportedly had spread from computerized engine management system to cloud-based driver assistance system.

Nonetheless, Stellantis had buffered the impacts of chip shortage by simply shifting its focus towards high profit-margin pickup trucks alongside SUVs, as a drawdown in inventories due to chip shortage, had propelled new cars’ prices higher, adding to a roughly $1.5 billion to Stellantis’ first-quarter revenues.

According to Stellantis’ quarterly earnings’ report for fiscal Q1, 2021, the carmaker’s total revenues jumped 14 per cent to €37 billion ($44.5 billion) in the latest quarter, beating an analysts’ estimate of €34.9 billion in gains, while Stellantis held on to its prior forecast of a yearly operating profit margin between 5.5 per cent to 7.5 per cent.