Stellantis reported its results for the first half of 2021 on Tuesday, saying that the newly formed automaker recorded a €5.9 billion ($7 billion) net profit despite a massive reduction of units due to the ongoing semiconductor shortage. Compared to a combined loss of €813 million ($964.6 million) that both former identities of the company showed during the same time.
Being the birth child from the merger between Fiat Chrysler Automobiles (FCA) and Peugeot S.A. (PSA), Stellantis is now the fourth-largest automaker globally by volume.
Net revenues for the first half of 2021 were €75.3 billion ($89.4 billion), compared to €51.7 billion ($61.4 billion) during the same period a year ago, up 46%.
“We are very pleased with the speed with which the new team has begun to execute as one company, as Stellantis,’’ Chief Financial Officer, Richard Palmer told the media.
The news of the profits was a bit of a shock to some industry investors, as the company suffered from several interruptions in the supply chain so far this year – the biggest being semiconductor chips. Semiconductors are the backbone of today’s automotive industry, controlling electronic features like driver-assist technologies, hybrid-electric systems, and even infotainment connectivity.
Stellantis said it produced 700,000 fewer cars so far in 2021 when compared to the same time last year. The shortages affected the production of about 200,000 units in Q1 and another 500,000 in Q2. The lower production caused an industrial free cash flow loss of €1.2 billion ($1.4 billion).
Of the €5.9 billion ($7 billion) recorded, the company achieved approximately €1.3 billion ($1.54 million) in cost savings during the first half of 2021. This was in part by both former identities sharing investments in architectures and technologies. The company expects that it will achieve 80% of its targeted €5 billion ($5.93 billion) in cost savings goal by 2024.
“These synergies allow us to continue to invest in the electrification strategy, which we talk about every day,” Mr. Palmer said.
For the North American market, Stellantis reported net revenues of €32.5 billion ($38.6 billion) for the first half of 2021. That is up from €22.8 billion ($27.1 billion), with an adjusted operating income of €5.2 billion ($6.2 billion), and an adjusted operating income margin of more than 16%. Stellantis says that it sold 873,000 vehicles in North America, a 25% increase over the same period of time last year.
According to the recent EV Day 2021 presentation, Stellantis has plans to launch 21 electrified products over the next two years. Those products will come in the form of 10 battery-electric (BEV) vehicles, 1 BEV and plug-in electric (PHEV) vehicle, and 9 PHEV vehicles.
“I would like to thank warmly all Stellantis employees for their outstanding focus on operational excellence and synergies execution that have led the Company to achieve very strong H1 financial results. While delivering this strong operational performance the Company also made significant progress on strategic matters related to electrification acceleration and software, which are fundamental pillars of our strategy.” – Carlos Tavares, Stellantis CEO
You can watch the full recorded webcast of the “First Half 2021 Results”, at the following link. (CLICK HERE).
Those who want to see the presentation via .PDF file, can check the following link. (CLICK HERE).