Stellantis Expects Lower Profitability But Backs Full-Year Guidance

By David Sachs

Stellantis expects lower profitability in the first half but confirmed its full-year guidance.

The Netherlands-based maker of Jeep, Dodge and a dozen other brands said Thursday that its adjusted operating income margin is expected at 10%-11%, compared with a 14.4% margin in the first half of last year. The company expects improvement in the second half on new model launches, cost-cutting measures and improvements in working capital, it said.

The carmaker set targets for liquidity levels of 25% to 30% of revenue in the medium term, and will shift its focus to capital efficiency and supporting strong returns for shareholders, it said. It will continue to use share buybacks and dividends to reward shareholders, it added.

In 2025, Stellantis will target the upper end of its 25%-30% dividend policy compared with 25% in recent years, the company said.

Stellantis confirmed its guidance of an adjusted double-digit operating margin and positive industrial free cash flows.

Write to David Sachs at david.sachs@wsj.com

(END) Dow Jones Newswires

June 13, 2024 02:45 ET (06:45 GMT)

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