The Stellantis sign was observed outside the FCA Headquarters and Technology Center in Auburn Hills, Michigan, on January 19, 2021, as photographed by Jeff Kowalsky from AFP via Getty Images.
On Monday, Stellantis announced a reduction in its 2024 annual guidance due to weakening “global industry dynamics” and increased competition from China, which led to a decline in Milan-listed shares at the opening. The French-Italian conglomerate, which owns brands such as Chrysler, Dodge, Jeep, and Maserati, alerted investors of lower-than-expected sales “across most regions” in the latter half of the year. The company now anticipates an adjusted operating income (AOI) margin between 5.5% and 7.0% for the full-year 2024 period, down from its previous “double-digit” outlook.
Stellantis also revised its projections for industrial free cash flow to a range between negative 5 billion euros ($5.58 billion) and negative 10 billion euros, shifting from its earlier “positive” guidance. This adjustment results from the anticipated lower adjusted operating income (AOI) margin and temporarily increased working capital in the latter half of the year.
As of 08:20 a.m. London time, Stellantis shares were trading down by 9%. This profit warning follows German automaker Volkswagen’s recent revision of its own annual outlook on Friday. Volkswagen now projects an operating return on sales of 5.6% in 2024, down from the previous range of 6.5% to 7.0%.
In a Google-translated bourse filing, Volkswagen attributed its reduced projections to lagging developments in its passenger car and commercial vehicle brands, along with a “deterioration of the macroeconomic environment,” which poses further risks, particularly for the Core brand group.
This story is developing and will be updated as more information becomes available.
