Stellantis posts exceptional profits despite the auto crisis
Not possible? Yes. Carlos Tavares is amazing. While the economic environment appears increasingly catastrophic (production shortages, soaring raw material costs, global logistics disruptions), the CEO of Stellantis announced a record current operating margin of 14.1% in the first half. Worthy of the best high-end specialists. Against 11.4% in the first half of 2021.
Operating profit climbed 44% to 12.37 billion euros. Net profit exploded 34% to 7.96 billion, while turnover climbed 17% to 88 billion euros. Cash flow amounted to 5.3 billion. With nearly 60 billion in available cash!
A top-of-the-range pricing policy that is bearing fruit
If the margin in North America exceeds 18% thanks to Jeeps and other highly profitable Ram pick-ups, Stellantis managed the performance of reaching 10.4% in Europe, a market that is nevertheless at half mast (-14% in the Union European Union in the first semester, due to the shortage of components). The three other regions also posted double-digit current operating margins: 13.4% in Asia-Pacific-India, where the group is very weak; 13.9% in South America, where Fiat is the undisputed number one; 15.5% in the Middle East and Africa.
The remarkable result for the first half of the year is the “reflection of rising prices, higher-end sales and positive exchange rate effects”, the Franco-Italian-American group said in a press release on Thursday.
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