Stellantis posts record profit, revenue in 2023

Higher pricing fueled Stellantis NV to a record $20 billion (18.6 billion euro) net profit in 2023, an increase of 11% from 2022.

Upped price points particularly in foreign markets drove the earnings growth in the third year of the company that includes Chrysler, Dodge, Jeep and Ram as well as the likes of Alfa Romeo, Citroën, DS, Fiat, Opel, Peugeot and Maserati. Although the company trumpets a higher average transaction price of $53,300 than its competitors in the United States, production disruptions and costs associated with new labor agreements last year kept North America from seeing earnings growth. There also was a 1% decrease in U.S. sales last year, but Stellantis says it'll remain "disciplined" on pricing.

The profits set the automaker up for a critical year. Amid raised interest rates and following cost cuts that have included workforce reductions, buyouts and reduced marketing spending, Stellantis is launching its first all-electric vehicles in North America just as others in the industry are recalibrating their expectations on EV uptake. Consumer hesitation continues around range, access to charging infrastructure and charging speed.

Stellantis has made the first deliveries of the all-electric Ram ProMaster commercial van built in Mexico to Amazon.com Inc. There are more EVs to launch this year: the Wagoneer S SUV, Jeep Recon SUV, Dodge Charger muscle car and Ram 1500 REV. Plus, it's joint-venture battery plant with LG Energy Solution in Windsor, Ontario, will begin production.

With a 12.8% global adjusted operating income margin compared to 13% a year ago, Stellantis achieved its double-digit margin expectations for the year, a guidance it extended for 2024, as well. Its Dare Forward 2030 strategy to double revenues introduced in 2022 calls for a steady 12% margin by the end of the decade.

Stellantis shares on the New York Stock Exchange were rising 3.4% in early morning trading at $25.22, while its shares in Milan and Paris were up 4.1%.

Net revenues for 2023 totaled a record $203.4 billion (189.5 billion euro), up 6% from 2022. Adjusted operating income was up 1% to $26.1 billion (24.3 billion euro). All regions saw positive adjusted operating incomes, though there were year-over-year decreases in North America and Asia.

Stellantis' adjusted operating income in North America fell 4.9% to $14.271 billion (13.298 billion euro) in 2023. It posted a 15.4% margin in North America compared to the 16.4% margin in 2022. That'll deliver a $13,860 profit-sharing payment to United Auto Workers-represented employees.

Stellantis also reported second-half results for 2023. Its net profit fell 13% to $8.271 billion (7.707 billion euro) on $97.845 billion (91.176 billion euro) in revenue, a 0.5% decrease compared to the last six months of 2022. All regions saw positive adjusted operating incomes, though they decreased year-over-year in North America, Europe and China.

North America's adjusted operating income in the second half of 2023 was $5.656 billion (5.271 billion euro), a 16% decrease. That was a 13% margin. Chief Financial Officer Natalie Knight previously said strikes last fall by the United Auto Workers and Canadian union Unifor cost less than $800 million in profit.

For the full year, industrial-free cash flow was up 19% to a record $13.797 billion (12.858 billion euro) from the start of 2023. Stellantis forecasts a positive figure for 2024. Industrial available liquidity was at $65.6 billion (61.1 billion euro).

Stellantis proposed a dividend to shareholders of $1.66 (1.55 euro) per share, pending their approval. The dividend that is 16% larger than last year's would be paid May 3 for owners of record as of April 23. The company also announced an open market share buyback program this year of $3.22 bullion (3 billion euro).

For the full year, all regions were profitable. Stellantis made $6.995 billion (6.519 billion euro) in Europe, $2.542 million (2.369 million euro) in South America, $2.686 million (2.503 million euro) in the Middle East and Africa and $539 million (502 million) in China, India and Asia Pacific.

Separately, global luxury brand Maserati made $151 million (141 million euro) in 2023 with shipments increasing 2.7% from 2022.

Stellantis' results surpassed its Detroit rivals. It beat General Motors Co., which made $10.1 billion in net income on revenue of $171.8 billion. Ford Motor Co. posted a $4.3 billion net income on $176.2 billion in revenue in 2023.

bnoble@detroitnews.com

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