STLA Stellantis NV

   By Kim Richters 
 

Shares in Stellantis NV traded higher on Wednesday after the car maker posted strong results and beat its profitability target for 2021.

The car maker--created last year when Fiat Chrysler and Peugeot maker PSA Group merged--said revenue and earnings in its first year as a combined company were boosted by strong pricing and a favorable vehicle mix, while it was able to accelerate synergies from the merger.

However, the semiconductor shortage led to a cut in planned production of around 20%, it said.

Stellantis's full-year revenue rose to 152.12 billion euros ($172.27 billion) from EUR133.88 billion while adjusted operating profit almost doubled to EUR18.01 billion from EUR9.22 billion. Its adjusted operating profit margin was 11.8% in 2021, beating the company target of around 10%. The figures are on a pro forma basis, adjusting for the timing of the merger.

"We see the strong print as a positive demonstration of margin resilience and progress on synergy targets that could drive consensus upgrades," Citi said.

At 1109 GMT, Stellantis shares were up 6% at EUR17.32 on the stock exchange in Milan, Italy.

For 2022, the company said it is targeting an adjusted operating profit margin in double digits and a positive industrial free cash flow. RBC Capital Markets said the margin target is in line with consensus expectations but that the cash-flow target is especially vague and "more concerning."

The car maker plans to present an update on its strategy next week.

Write to Kim Richters at kim.richters@wsj.com

(END) Dow Jones Newswires

February 23, 2022 06:26 ET (11:26 GMT)

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