Dodge maker Stellantis reduces profit warning
Stellantis signage is seen outside FCA Headquarters and Technology Center in Auburn Hills, Michigan, on January 19, 2021.
Jeff Kowalsky | Afp | Getty Images
Stellantis on Monday trim Its 2024 annual guidance was based on deteriorating “global industry dynamics” and increased competition from China, which sent Milan-listed shares lower at the open.
The Franco-Italian group, best known for brands such as Chrysler, Dodge, Jeep and Maserati, warned of lower-than-expected sales “across most regions” in the second half of the year. The company now expects adjusted operating income (AOI) margin to be between 5.5% and 7.0% for full-year 2024, down from its “double-digit” outlook.
It also lowered its industrial free cash flow forecast to between negative 5 billion euros ($5.58 billion) and negative 10 billion euros, from previous “positive” guidance, due to operating income margin Adjusted income (AOI) is expected to be lower and working capital temporarily higher in the second half of the year.
The carmaker was trading down 9% at 8:20 a.m. London time.
Stellantis’ profit warning comes days after German carmaker Volkswagen again cut its own annual outlook on Friday, now aiming for an operating profit on sales of 5. 6% in 2024, from 6.5-7.0% previously.
In Google translation submit securities documentsIt attributed the lowered forecasts to the slow development of passenger car and commercial vehicle brands, coupled with “a deterioration of the macroeconomic environment, giving rise to additional risks, in particular is for the Core brand group.”
This breaking news story is being updated.
