From CNBC:

Auto giant Stellantis reported a 10% year-on-year fall in profit in the second half of 2023 due to strikes at the “Detroit Three” automakers. Adjusted operating income was down to 10.2 billion euros, but still exceeded analyst forecasts. The company incurred $3.2 billion in revenue losses from the strikes. Stellantis reached a labor agreement with the United Auto Workers, investing $18.9 billion in the U.S. by 2028 and securing a deal that included 25% wage increases and the reopening of an idle plant in Illinois.

Despite the impact of the strikes, Stellantis reported strong earnings for 2023 as a whole. Net revenues were up 6% from 2022, and consolidated shipment volumes rose 7%. Adjusted operating income for 2023 was up 1% to 24.3 billion euros, while industrial free cash flows increased by 19% to 12.9 billion euros. The company proposed a 1.55 euros per common share dividend to shareholders and announced a 2024 share buyback program of 3 billion euros. Stellantis CEO Carlos Tavares stated, “Today’s record financial results are proof that we have become a new global leader in our industry and will remain rock solid as we look to a turbulent 2024.”

In North America, the group’s AOI margin fell 100 basis points year-on-year to 15.4%, primarily due to production disruptions and costs related to new labor agreements. Second-half industrial free cash flows were down 24% from the same period last year at 4.2 billion euros, while revenues were also down slightly at 91.2 billion euros. Stellantis shares jumped more than 4% in morning trade in Europe following the results.

The strikes cost the company $3.2 billion in revenue through October, but despite this, the world’s third-largest automaker by revenues proposed a dividend to shareholders of 1.55 euros per common share, roughly a 16% increase from the previous year, and announced a 2024 share buyback program of 3 billion euros. Stellantis CEO Carlos Tavares stated, “Today’s record financial results are proof that we have become a new global leader in our industry and will remain rock solid as we look to a turbulent 2024.”



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