Proactive Investors - Stellantis NV (NYSE:STLA, EPA:STLA)’ US-listed shares plunged more than 10% after the European automaker, whose brands include Chrysler, Dodge and Fiat, posted a 12% revenue drop for the first quarter.
Revenues for the January to March period were €41.7 billion (US$44.6 billion), below expectations of €42.6 billion.
Lower volumes, mix and foreign exchange headwinds were partly offset by “firm net pricing,” the company said.
Consolidated shipments were down 10% at 1,335 million units in Q1, which the company attributed to production management to prepare for a new wave of products in the second half of 2024 and strong shipments in the year-ago quarter.
CFO Natalie Knight said that the company believes it has set the stage for “materially improved growth and profitability” in the second half of the year.
During the first quarter, the company launched four new models of the 25 models planned for release in 2024, which include 18 battery electric vehicles.
“While Q1 2024 year-over-year shipments and net revenues comparisons were difficult due to transitions in our next generation product portfolio manufactured on new platforms, we are delivering clear improvements in key commercial dynamics with customer sales outpacing shipments,” Knight said.
“We are reducing inventories to reinforce our strong relative pricing ahead of our new or mid-cycle product launches this year in key regions.”
Stellantis shares traded down 10.7% at US$22.27 late morning on Tuesday in New York.