Stellantis, the automotive giant behind brands like Jeep, Dodge, and Fiat, has experienced a turbulent financial year, reporting a significant 70% drop in full-year profits. The company, which also owns Chrysler and Peugeot, attributed its earnings decline to a combination of North American performance issues and a global decrease in demand for new cars. This downturn is further compounded by challenges in China, the world's largest automotive market.
In the recently released financial results, Stellantis posted a net profit of €5.5 billion ($5.8 billion) for the full year 2024, down from €18.6 billion in 2023. The company's adjusted operating income margin is forecasted to range between 5.5% to 7% for the full-year 2024 period, marking a departure from its previous "double digit" outlook. Analysts had anticipated a net profit of €6.4 billion for the year, according to a consensus compiled by LSEG.
The company's stock has shown resilience despite these setbacks. Shares of the Milan-listed Stellantis have risen over 7% since the start of the year. However, the company issued a profit warning in September, alerting stakeholders to lower-than-expected sales "across most regions" in the latter half of 2024.
The leadership at Stellantis is undergoing changes following the unexpected departure of CEO Carlos Tavares late last year. Chairman John Elkann is currently heading an interim executive committee until a successor is appointed, which is expected to occur during the first half of this year.
As Stellantis navigates these challenges, it continues to implement strategic measures to enhance its performance and profitability. The company remains committed to overcoming current hurdles and restoring its financial health in the coming years.