Stellantis Expects Strong First-Half Margins
08 Juli 2021 - 08:50AM
Dow Jones News
By Pietro Lombardi
Stellantis NV expects to post strong margins for the first half
of the year but warned that production volumes below planned levels
will hit its cash flows.
The auto maker, created through the merger of Fiat Chrysler
Automobiles NV and Peugeot SA, said that adjusted operating income
margins in the first half of the year should be above the full-year
margin guidance range of 5.5% to 7.5%. This result comes thanks to
positive pricing and product mix and despite lower-than-expected
volumes, it said Thursday.
The company forecasts negative industrial free cash flows "due
to the negative working capital impact of the lower than planned
production volumes."
However, the full-year cash flow should be positive, in part
thanks to a strong contribution from synergies, which are on track
to beat the target for the first year, the company said.
The update comes ahead of a presentation of the company's
electrification strategy, which will include "significant
investments in electrification technology and connected software,"
it said.
Write to Pietro Lombardi at pietro.lombardi@wsj.com;
@pietrolombard10
(END) Dow Jones Newswires
July 08, 2021 02:36 ET (06:36 GMT)
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