Stellantis said its net profit jumped 26% in 2022 to almost $18 billion (16.8 billion euros) compared with its 2021 results.
The automaker offered a rosy assessment of the past year as well as what’s to come in 2023 as it released its earnings early Wednesday for the year. The company’s guidance for 2023 listed double-digit adjusted operating income margin and positive industrial free cash flow.
CEO Carlos Tavares, in a news release, touted the results and what they signal about the company’s direction as it tackles the shift toward vehicle electrification. Stellantis owns the Jeep, Ram, Chrysler, Dodge, Fiat, Alfa Romeo and Maserati brands.
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“In addition to our record financial results and the focused execution of the Dare Forward 2030 strategic plan, we also demonstrated the effectiveness of our electrification strategy in Europe. We now have the technology, the products, the raw materials and the full battery ecosystem to lead that same transformative journey in North America, starting with our first fully electric Ram vehicles from 2023 and Jeep from 2024,” Tavares said. Dare Forward 2030 is the name of the company’s business plan, which it released last year.
The company said its global battery electric vehicle sales increased 41% to 288,000 in 2022, with a target of 5 million global battery electric vehicle sales by 2030. During calls with reporters and analysts Wednesday, Tavares highlighted that those 2022 BEV sales represented just what was happening in Europe and that the numbers would continue to grow. He said the company is starting its “BEV offensive in the U.S.” this year, with the introduction of the Ram ProMaster battery electric vehicle.
Tavares also said that the company has a strong order book, and he noted that the Ram 1500 REV, the company’s first electric pickup which was shown in a commercial for this year’s Super Bowl, sold out of its preorders for the first model year in three days. The truck is expected to launch in the fourth quarter of 2024.
Recent EV price cuts announced by Ford and Tesla were also apparently on Tavares’ mind. He said some competitors had announced price reductions to capture state subsidies, and “I can also guesstimate from the numbers one of the reasons they are doing this is that they are not as happy as they would like to be about their BEV sales growth.”
Despite the rise in BEV sales, the company reported a slight decline in its overall shipments for the year, down 2% to just over 6 million vehicles.
It reported net revenues of $191 billion (179.6 billion euros), up 18%, and adjusted operating income of $25 billion (23 billion euros), up 29%, with a 13% margin.
The company reported increased net revenues for all of its regions in 2022.
North America, which generates much of the company’s profits, offered a solid showing for the year. The company reported vehicle shipments of 1.86 million vehicles, an increase over 1.82 million in 2021. The change was a result of higher Jeep Grand Wagoneer, Jeep Compass and Chrysler Pacifica volumes slightly offset by lower Grand Cherokee and Ram pickup volumes, the company said.
Net revenues for the region hit $90.99 billion (85 billion euros), up from $74.19 billion (69.7 billion euros) with adjusted operating income of $14.88 billion (13.99 billion euros), up from $12.1 billion (11.4 billion euros).
The company also said its 64,000 plug-in hybrid electric vehicle sales, such as for the Jeep Wrangler 4xe, put it in the No. 1 spot in the United States, and that its average transaction price in the United States, at $53,000 per vehicle across its portfolio was highest compared with its competition in 2022.
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The company’s 2022 results compare favorably to its Detroit Three rivals. For the year, General Motors reported net income of $9.9 billion and Ford reported a net loss of $2 billion, according to previous Free Press reports.
The performance means UAW-represented workers could get profit-sharing checks as high as $14,760.
Stellantis reports earnings each half year rather than each quarter, and its release on Wednesday included earnings for the second half of 2022. The company said net revenues were up 19% from the same period in 2021, to $97.51 billion (91.6 billion euros), and net profits were also up 19%, to $9.37 billion (8.8 billion euros); adjusted operating income hit $11.6 billion (10.9 billion euros), up 17%; but cash flows from operations were down 22% to $11.6 billion (10.1 billion euros).
In North America, vehicle shipments declined in the second half of the year from 947,000 to 902,000 vehicles compared with the same period in 2021. Net revenues were at $45.77 billion (43 billion euros), up from $39.7 billion (37.3 billion euros). Adjusted operating income was at $6.7 billion (6.3 billion euros), up from $6.5 billion (6.1 billion euros).
The company also announced a $4.47 billion (4.2 billion euros) ordinary dividend, equaling $1.43 (1.34 euros) per share, subject to shareholder approval and a $1.6 billion (1.5 billion euros) stock buyback program planned for this year.
The company’s performance and announcements appeared to lift the stock price. At midday Wednesday, the stock was up 4.38% to $17.39.
Contact Eric D. Lawrence: elawrence@freepress.com. Become a subscriber.