Improvements in semiconductor supplies helped Jeep- and Chrysler-parent Stellantis ship more vehicles in the first quarter of 2023.
Those consolidated shipments of almost 1.5 million units, up 7% compared with the same quarter a year ago, gave net revenues a boost as well, up 14% to $52 billion (47 billion euros).
Net revenues were up in each region, rising 10% in North America to $25 billion (23 billion euros).
The figures came as part of the company’s quarterly shipments and revenues report released early Wednesday. The automaker releases its full earnings reports only every six months, after the second and fourth quarters, so Wednesday’s numbers provide a limited view of its performance.
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In addition to releasing shipments and revenues, the company confirmed its full-year guidance, predicting a double-digit adjusted operating income margin and positive free cash flow. The company said it has initiated a $1.7 billion (1.5 billion euros) stock buyback program and noted that shareholders are scheduled to receive a payout on Thursday of $1.48 per Stellantis common share (based on the exchange rate Wednesday) from a $4.6 billion (4.2 billion euros) dividend distribution approved last month.
Reflecting on the results, Chief Financial Officer Richard Palmer called it “all in all, a good start to the year.”
Palmer, a holdover from Stellantis’ pre-merger days at Fiat Chrysler Automobiles, is preparing to end his 20-year tenure with the company next month (Natalie Knight has been named as his replacement), but he didn’t provide much insight when asked about his upcoming departure in a call with journalists before the report’s release.
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“I think the company’s in great shape … the timing is right,” he said.
That timing comes as the company, which also owns the Ram, Dodge, Fiat, Alfa Romeo and Maserati brands, prepares to launch an increasing number of battery electric vehicles. Those EV sales increased 22% for the quarter compared to the same period in 2022, with nine new EVs planned to launch globally this year.
It’s a consequential year for the automaker in other ways, too. It’s preparing for contract talks with the UAW and Unifor, which represents autoworkers in Canada. The idling of the Belvidere Assembly Plant in Illinois and recent announcements of “corporate wide” buyout offers and plans to cut 3,500 hourly jobs in the United States have prompted an angry reaction from the United Auto Workers.
Contact Eric D. Lawrence: elawrence@freepress.com. Become a subscriber.