MILAN (Reuters) -Carmaker Stellantis on Wednesday reported a forecast-beating 17% rise in operating profit in the second half of last year on a strong product and pricing mix, despite persistent issues with logistics and semiconductor supply.
The company also announced a dividend of 4.2 billion euros ($4.48 billion), or 1.34 euros per share, on 2022 results, and said it would launch a share buyback program worth up to 1.5 billion euros to be performed by the end of this year.
Adjusted earnings before interest and tax (EBIT) at the world’s third largest auto maker by sales stood at 10.949 billion euros in the July to December period, topping analysts’ expectations from a Reuters poll of 9.63 billion euros.
The margin on adjusted EBIT stood at 12% in the second half, down from 14.1% in the first six months of the year. That however allowed the company to meet its target for a “double digit” margin last year.
Chief Financial Officer Richard Palmer said vehicle shipments for the group fell 2% last year, mainly due to issues with its supply chain, notably with semiconductors and logistics, especially in Europe.
“Challenges continue in securing capacity for (vehicle) outbound transportation (to customers),” he said.
“Semiconductors continue to be a problem, I don’t think the situation will be fully resolved in 2023,” Palmer added.
Stellantis, which was created just over two years ago through the merger of Fiat Chrysler and Peugeot maker PSA, said it had so far made cash synergies of 7.1 billion euros.
That places it two years ahead of schedule in its target to reach annual cost savings of 5 billion euros.
($1 = 0.9383 euros)
(Reporting by Giulio Piovaccari; Editing Federico Maccioni and Jan Harvey)
