According to foreign media reports, although Stellantis's revenue fell 14% in the third quarter compared with the same period last year due to the chip supply crisis, the company maintained its target of a full-year operating profit margin of 10%.
Stellantis said in a statement on Oct. 28 that third-quarter revenue was 32.6 billion euros ($37.8 billion). The number of cars delivered was 1.131 million, down 27% from the same period last year.
Like most carmakers, Stellantis was forced to suspend production lines at some factories in the third quarter due to a lack of automotive semiconductors. The company lost 30 per cent of its planned production, or 600000 cars, in the third quarter.
"the chip shortage may be slightly higher than we expected when we last communicated with the market in August," said Richard Palmer, Stellantis's chief financial officer.
Palmer said Stellantis would cut production by more than the previous estimate of 1.4 million vehicles for the full year because of chip shortages. Stellantis's chip supply improved slightly in October compared with September, and the trend is expected to continue into the fourth quarter.
Palmer added, "for the semiconductor industry, it is still difficult to determine when the chip shortage will end."
Palmer said Stellantis expects delivery to improve in the last quarter of this year. "We have appropriately raised car pricing in all regions." He saw Stellantis's synergies after the merger of PSA and FCA, as well as the good progress made in the company's cost management.
Assuming that semiconductor supply does not deteriorate further and that there is no further strengthening of epidemic control in Europe or the US, Palmer confirms its target of an adjusted operating margin of about 10 per cent for the full year. Stellantis raised its adjusted operating margin to 10 per cent in August from 5.5 to 7.5 per cent as a result of good performance in the first half, including record profit margins in North America and progress in cost savings.
Stellantis did not release third-quarter profit figures. In the first half of this year, the company's adjusted profit margin was 11.4 per cent. The profit margin in 2020 is 1.5%, which is an estimate, because in 2020, FCA and PSA are two independent companies.
Stellantis adjusted its annual auto industry growth forecasts for some regions. Among them, the company lowered its forecasts for North America, South America and Europe and raised its forecasts for the Middle East and Africa, while its previous forecasts for India, Asia-Pacific and China remained unchanged.
