Written by Cláudio Afonso | LinkedIn | X
Stellantis sharply lowered its 2024 annual guidance on Monday, citing worsening “global industry dynamics” and intensified competition from China, which led to a drop of 14 percent in Milan-listed shares.
The European group, which has Jeep, Maserati, and Chrysler among its extensive brand portfolio, also warned of weaker-than-expected sales across most regions in the second half of 2024.
The company now expects its adjusted operating income (AOI) margin for the full-year 2024 to range between 5.5% and 7.0%, down from its earlier projection of “double digits,” Stellantis said in a statement.
“Adjusted operating income (“AOI”) margin – Expected to be between 5.5 – 7.0% for the FY 2024 period, down from prior “double digit”. Roughly two-thirds of the reduced AOI margin is driven by corrective actions in North America,” Stellantis said on Monday.
Stellantis held recently its investor day at its North American headquarters where the chief executive Carlos Tavares said the company made “arrogant” mistakes in its U.S. division that led to declining sales, inflated inventories, and investor concerns as the company aims to meet ambitious financial targets despite economic and industry uncertainties.
“Other contributors include lower-than-expected sales performance in the second half of the year across most regions,” the company added.
Stellantis further reduced its forecast for industrial free cash flow, now expecting it to fall between negative 5 billion euros ($5.58 billion) and negative 10 billion euros.
Last Friday, also the German giant Volkswagen which cut its own 2024 guidance on Friday, now targeting an operating return on sales of 5.6%, down from a previous range of 6.5% to 7.0%.
Written by Cláudio Afonso | LinkedIn | X
