Stellantis sees $7B profit
In its first half year in existence, Stellantis reported billions of dollars in profits but the global chip shortage hit the company’s cash flow by billions of dollars as well.
Stellantis, which formed in January from the merger of Fiat Chrysler Automobiles and Peugeot maker PSA Group, released its half-year results, touting profits across all segments and record results in North America. The report showcases the change from a year ago when both FCA and PSA Group, along with the rest of the auto industry, were grappling with production shutdowns and the economic fallout as the coronavirus pandemic took hold.
Based on calculations assuming the merger had happened at the beginning of the year, Stellantis reported net profit of $7 billion for the first half of 2021, compared with a loss of $965.4 million during the same period in 2020. Net revenues in the half were $89.4 billion, compared with $61.4 billion in the same period a year ago, an increase of 46%. The company reported adjusted operating income of $10.2 billion, up from $893 million in 2020, and a margin of 11.4%.
But the impact of the chip shortage meant the company, which counts Jeep, Ram, Dodge, Chrysler, Fiat, Maserati and Alfa Romeo among its 14 brands, suffered an industrial free cash flow loss of $1.4 billion. Chief Financial Officer Richard Palmer said if not for the semiconductor shortage, cash flow would have been a positive $4.5 billion.