Stellantis Revenue Misses Forecasts on Lower U.S. Volumes, New Model Preparation — Update

By David Sachs

Stellantis's first-quarter revenue trailed analysts' expectations, driven by lower sales in North America as the carmaker prepares production for new models.

The multinational owner of Jeep, Dodge and a dozen other brands said Tuesday that net revenue fell along with overall sales volumes, as shipments in North America--the company's largest market--slipped 20%.

As a group, the ramp-up of new models, including electric cars, weighed on results amid a changeover to new production platforms, Stellantis said. The carmaker released four of its planned 25 model upgrades and launches in the first quarter, setting it up for a stronger second half, it said.

"We are reducing inventories to reinforce our strong relative pricing ahead of our new or mid-cycle product launches this year in key regions," Chief Financial Officer, Natalie Knight, said.

In North America, model changeovers for the Ram 1500 and Dodge Charger weighed on results, partly offset by Jeep Wagoneer sales, Stellantis said. Net revenue in the region fell 15% on lower sales and unfavorable currency exchange rates.

Shipments in Europe fell 6% as the company reduced its inventory to make room for new models, it said, while net revenue fell 15% in the region, the company's second-biggest market.

Overall, the company's revenue fell 12% to 41.7 billion euros ($44.71 billion), trailing expectations from analysts, who had expected revenue of EUR44.35 billion, according to a Visible Alpha consensus.

Consolidated shipments fell 10% to 1.3 million vehicles, though electric-vehicle sales rose 8%.

The company backed its full-year guidance.

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

(END) Dow Jones Newswires

April 30, 2024 04:30 ET (08:30 GMT)

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