Auto Giant Stellantis Posts Strong Profit In Inaugural First Half
Fahad Shabbir (@FahadShabbir) Published August 03, 2021 | 01:18 PM
US-European auto giant Stellantis, formed by Peugeot and Fiat Chrysler, posted a sizeable net profit in the new company's first six months of existence even as a global chip shortage cut its production
Paris (UrduPoint / Pakistan Point News - 3rd Aug, 2021 ) :US-European auto giant Stellantis, formed by Peugeot and Fiat Chrysler, posted a sizeable net profit in the new company's first six months of existence even as a global chip shortage cut its production.
Stellantis, whose brands also include Maserati and Jeep, said on Tuesday its net profit totalled 5.8 billion Euros ($6.9 billion) in the first six months of the year. Net revenues reached 72.6 billion euros.
Richard Palmer, the company's chief financial officer, said Stellantis hit a "record margin" compared to the past performances of the previous companies, Peugeot and Fiat Chrysler.
"We feel we had a very strong first half in terms of margins and commercially speaking," Palmer said in a press conference.
The company had an adjusted operating income margin -- or operating income divided by net sales -- of 11.4 percent.
Stellantis performed well despite a global shortage of semiconductors that forced the company to cut production of 700,000 vehicles.
Palmer said production would be reduced by another 500,000 vehicles in the third quarter but that the chip shortage is not expected to worsen.
Stellantis expects a 10 percent margin for the full year -- better than previously forecast -- assuming "no deterioration of the semicondutor situations and no further lockdowns" due to Covid, he said.
The company performed well in North America, with strong sales of its Ram pickup trucks and Jeep hybrids.
In Europe, its main market, sales were driven by the Peugeot 2008 model and the new Citroen C4, Oel Mokka and Fiat 500 electric cars.
The company said it was going "full speed ahead" with the launch of 11 battery-electric vehicles and 10 plug-in-hybrids over the next 24 months.
"While delivering this strong operational performance the Company also made significant progress on strategic matters related to electrification acceleration and software, which are fundamental pillars of our strategy," chief executive Carlos Tavares said in a statement.
tsz/lth/yad
Related Topics
Recent Stories
HEC reviews curricula for environmental sciences degree programme
ICC Asia looking forward to an action-packed Asia Cricket Week
Yuvraj Singh named ICC Men’s T20 World Cup 2024 Ambassador
Greece hands Olympic flame to 2024 Paris Games hosts
Two Kyiv hospitals evacuating over feared Russian strikes
World must act on neurotech revolution, say experts
Charles & Catherine's cancer diagnoses
Champions Alcaraz and Sabalenka through in Madrid Open
King Charles to resume some public duties during cancer treatment: palace
US defense chief announces $6 bn in security aid for Ukraine
Heavy rains cause damage to Spezand-Taftan railway track
Woman stabbed in Israel, attacker killed: police
More Stories From Business
-
Finance minister reviews progress on FBR digitalization
6 hours ago -
US stocks rebound on tech earnings, London hits new record
6 hours ago -
US approves gene therapy treatment for hemophilia
6 hours ago -
KATI president for inclusion of agri sector in tax net
6 hours ago -
Ahsan chairs 13th CPEC-JCC preparatory meeting, reviews arrangements for high-level delegation’s v ..
7 hours ago -
Police to take every step for security of business community: IGP
7 hours ago
-
WB director, Planning minister discuss reforms in development projects
8 hours ago -
IP rights crucial in achieving SDG : Jam Kamal
9 hours ago -
FBR’s data protection efforts commended by OECD assessment team
9 hours ago -
US stocks rebound on tech earnings, London hits new record
10 hours ago -
SECP-IFSB workshop highlights Pakistan's progress in Islamic Finance Development
10 hours ago -
SBP to announce monetary policy on April 29
10 hours ago