The Stellantis logo is visible outside FCA’s headquarters and technical center in Auburn Hills, Michigan, on January 19, 2021.
Jeff Kowalski | AFP | Getty Images
Monday’s Strantis trimmed Milan-listed shares opened lower after its annual performance guidance for 2024, amid deteriorating “global industry dynamics” and intensifying competition in China.
The French-Italian conglomerate, known for brands such as Chrysler, Dodge, Jeep and Maserati, warned that sales in the second half of the year will be lower than expected in “most regions”. The company currently expects full-year 2024 adjusted operating income (AOI) margins of 5.5% to 7.0%, below the “double-digit” forecast.
The company also lowered its industrial free cash flow forecast to a range of negative 5 billion euros ($5.58 billion) to negative 10 billion euros from previous “positive” guidance due to expectations of lower adjusted operating income (AOI) margins. Working capital will temporarily increase in the second half of this year.
The carmaker’s shares were down 9% as of 08:20 a.m. London time.
A few days ago, German automaker Volkswagen slashed its annual forecast again and now expects operating return on sales to be 5.6% in 2024, compared with the previous range of 6.5-7.0%.
Translated on Google Exchange filingIt attributed the downward revision to the lagging development of passenger car and commercial vehicle brands, as well as “the deterioration of the macroeconomic environment, leading to further risks, especially for the core brand group.”
This breaking news story is being updated.
