Stellantis has today posted a slight increase in operating income in the third quarter as the automaker presses ahead with a slow turnaround process, which still generated a \u20ac4 billion industrial cash outflow in the period.<\/p>\n
Following two years of sliding sales and profitability, CEO Antonio Filosa in May promised dozens of new models, cost cuts and deeper cooperation with Chinese partners as part of a new business plan up until 2030.<\/p>\n
However, investors still need to be convinced that the Franco-Italian automaker, which in February announced EV-related impairments for over \u20ac22 billion, is on the path to sustained recovery.<\/p>\n
Earlier this month its shares sank to their lowest level since the group’s formation in early 2021 through the Fiat Chrysler-Peugeot merger.<\/p>\n
The Fiat-to-Jeep maker said its adjusted earnings before interest and taxes (EBIT) amounted to \u20ac256m in the three months from July to September, from \u20ac90m a year earlier.<\/p>\n
That was broadly in line with a consensus of \u20ac191m from a Reuters poll of analysts, who were bracing for a weak quarter before an expected stronger performance in the final part of the year.<\/p>\n
Third-quarter revenues were little changed at \u20ac37.6 billion, with slight increases in Europe and South America and a 3% drop in North America, which has historically been Stellantis’ most profitable market.<\/p>\n
Cost cutting plan accelerates<\/p>\n
The company today confirmed its 2026 forecasts and a closely-watched target to return to positive cash flow generation in 2027, as it books benefits for a group-wide cost-cutting plan CEO Filosa launched this year.<\/p>\n
“Our Value Creation Program has ramped up rapidly, with positive contributions being recognised in the quarter, and we remain on track to implement at least 40% of the total \u20ac6 billion in run-rate efficiencies by the end of this year,” he said in a statement.<\/p>\n
The company said it expected to make savings in the fourth quarter in the “mid-hundreds of millions of euros” area, or around \u20ac500m, approximately double the amount realised in the third quarter.<\/p>\n
Stellantis today also said it would present a new business plan for its struggling Maserati luxury brand on December 10.<\/p>\n","protected":false},"excerpt":{"rendered":"Stellantis has today posted a slight increase in operating income in the third quarter as the automaker presses…\n","protected":false},"author":2,"featured_media":667874,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[72,61,60],"class_list":["post-667873","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-ie","tag-ireland"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/667873","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=667873"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/667873\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/667874"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=667873"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=667873"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=667873"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}