MILAN — Stellantis made a fast start in its first year after the merger of Fiat Chrysler Automobiles and PSA Group, with the world’s No. 4 automaker reporting profitability and benefits from the combination that exceeded targets.
The Chrysler parent company said net profit nearly tripled to $15.2 billion (all figures in USD) in 2021 while total revenue improved 14 per cent to $172.4 billion.
Following PSA’s French reporting policies, Stellantis did not report quarterly results.
“Record results prove that Stellantis is well positioned to deliver strong performance, even in the most uncertain market environments,” CEO Carlos Tavares said in a statement on Wednesday.
Shares in Stellantis gained six per cent to $19.53 in premarket trading.
The group said the margin on its adjusted operating profit rose to 11.8 per cent last year, above its target of about 10 per cent, because of strong execution on synergies, which generated around $3.6 billion in net cash benefits.
Tavares next week will present the group’s business plan, a bit more than a year after Stellantis was created through the merger of Fiat Chrysler Automobiles and PSA Group.
Stellantis forecast a double-digit margin again this year. The pro-forma figure for 2020 was 6.9 per cent.
In North America, Stellantis said adjusted operating income rose 85 per cent to $12.8 billion. Revenue increased 15 per cent to $79 billion. Margins in North America climbed to a record 16.3 per cent last year from 10.1 per cent in 2020.
The North American results generated profit-sharing for UAW members of $14,670.
“UAW Stellantis members are proud of the product they create every day especially during challenging environments over the past two years,” UAW Vice President Cindy Estrada said in a statement. “We continue to make sure that this dedication in the face of pandemic and unforeseen parts shortages is recognized properly.”
UAW members at General Motors received $10,250 while Ford members earned $7,377.