MILAN (Reuters) – Stellantis said on Thursday its operating profit fell 10% 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.
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, according to a Reuters poll.
The group said it would propose a 1.55 euro per share dividend, up about 16% 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.
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.
($1 = 0.9321 euros)
(Reporting by Giulio Piovaccari and Gilles Guillaume; Editing by Josephine Mason)
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