Stellantis revenues rise 14% in Q1 on higher prices, better chip supply

Stellantis said its revenue grew 14 percent in the first quarter on higher shipments, helped by an improvement in semiconductor supply and strong net pricing power.

Net revenues were 47.2 billion euros ($52 billion) in the January-March period, topping analyst expectations of 45.5 billion euros. Consolidated shipments were up 7 percent in the quarter to 1.48 million units, Stellantis said.

"A better fulfilment of semiconductor orders is slowly but surely improving our capacity to produce vehicles," Chief Financial Officer Richard Palmer said in a media call on Wednesday.

Palmer said the group is also seeing an improvement in its logistic situation in Europe, after issues with vehicles deliveries last year.

Stellantis said its sales of battery-electric vehicles rose 22 percent in the first quarter and that it would add nine new BEV models to its offerings this year.

The company reaffirmed full-year guidance for double-digit adjusted operating income margin and positive industrial free cash flows.

Stellantis said new vehicle inventory was at 1.3 million cars at the end of March, reflecting a return to more normal levels.

As supply-chain problems ease, automakers are set to struggle to maintain high prices that have underpinned margins in the aftermath of the pandemic.

Successive price cuts from U.S. rival Tesla, whose Model Y was Europe’s best-selling car during the first quarter, is adding to the pressure.

Ford Motor on Tuesday said it anticipated more downside on pricing as industrywide sales volumes "normalize."

Palmer said Stellantis's pricing was "relatively stable" in the first quarter. "We do have a good order portfolio in Europe at the moment, so short term pricing should be relatively stable too but clearly that depends on order intake," he said.

Europe has emerged as a focal point for a downturn as consumers in the region feel the pinch from a cost-of-living crisis and higher interest rates. Mercedes-Benz last week said demand in Europe is falling behind strong U.S. and Chinese markets.

"Demand in holding up well notwithstanding lots of macro volatility" in Europe, Palmer said.

'Right time' to step down

Palmer, 56, will be stepping down at the end of June after two decades at the company.

The "timing is right" to leave Stellantis, Palmer said. "It's a reasonable time frame to go and do something different and I think the company is in great shape."

Reuters and Bloomberg contributed to this report