Stellantis operating profit down 10% in H2 after North America strikes

Operating profit: Automotive giant Stellantis on February 15 said its operating profit fell 10 per cent in the second half of last year when six-week strikes at the 'Detroit Three' automakers caused long stoppages at the group's operations in North America, its profit powerhouse.

The adjusted operating profit (EBIT) at the world's third largest automaker by revenues fell to 10.2 billion euros ($10.96 trillion) in the July-December period. That topped analysts expectations of 9.54 billion euros.

The group said it would propose a 1.55 euro per share dividend, up about 16 per cent from a year earlier, and that it would run during 2024 a share buy back programme worth 3 billion euros.

For this year, Stellantis stood by its forecast for double-digit margins on adjusted operating profit and positive industrial free cash flow, even as the carmaker faces higher labour costs in North America. It has given the same outlook for the past two years.

The unions' coordinated strikes in the United States and Canada ended with agreements for record salary increases for workers at the Detroit Three automakers.

"Building on 2023 momentum, management notes a number of factors could create a supportive revenue backdrop in 2024, including reduced supply and logistical constraints, stabilizing and potentially reduced interest rates, and the benefits of the company’s expected expansion of its product offering," it said in a statement.