Stellantis makes $15B in its first year

Cost-cutting efforts and strong vehicle pricing fueled the maker of Jeep SUVs and Ram pickup trucks to a $15.1 billion (13.4 billion euro) net profit in 2021.

The results sum up Stellantis NV's first year of existence after Fiat Chrysler Automobiles NV and French rival Groupe PSA closed their transatlantic merger in January 2021. The automaker shared fullyear and second-half results early Wednesday morning.

The profits were a 179% increase year-over-year from its predecessors' combined 2020 results as the industry recovered from pandemic-induced shutdowns but battled supply-chain snags.

With an 11.8% adjusted operating income margin, Stellantis beat its increased full-year guidance of 10%. That's despite a global semiconductor shortage, increasing raw material prices and other supply snarls felt throughout the year that sent some plants down for months and limited dealership inventories, increasing vehicle prices.

The automaker is expecting double-digit margin results in 2022, as well. Stellantis shares on the New York Stocking Exchange were rising 6.6% in pre-market trading, while its shares in Milan and Paris were up 5.9%.

“Today’s record results prove that Stellantis is well positioned to deliver strong performance, even in the most uncertain market environments," CEO Carlos Tavares said in a statement. "Together, we are focused on executing our plans as we race to become a sustainable mobility tech company."

Net revenues for 2021 totaled $172.2 billion (152 billion euro), up 14%, despite losing 20% of planned production because of unfilled semiconductor orders. Adjusted operating income was up 95% to $20.4 billion (18 billion euro).

In the second half of the year, Stellantis' net profit increased 32% to $8.4 billion (7.4 billion euro) on $87 billion (76.8 billion euro) in revenue, down 7% compared to the last six months of 2020. All regions saw growth and positive adjusted operating incomes.

For the full year, industrial-free cash flow was $6.88 billion (6.07 billion euro) from the start of 2021. Stellantis forecasted a positive figure for 2022, as well, with industrial available liquidity at $71 billion (62.7 billion euro). It estimated cost savings from the merger have achieved a net cash benefit of $3.6 billion (3.2 billion euro) in its first year of the $5.7 billion (5 billion euro) total expected.

The automaker also is pursuing a $3.7 billion (3.3 billion) ordinary dividend to shareholders, pending their approval.