Stellantis(STLA.US) fell more than 9% as it reported a 48% drop in half-year profit, falling short of expectations.
Thursday, shares of European automaker Stellantis(STLA.US) fell more than 9% to $17.79 at the time of writing, after the company reported a 48% to 56% drop in first-half profit to €5.6bn, well below the market's average forecast of €7bn, hit by lower sales volumes and product mix, as well as unfavourable currency and restructuring costs. Revenue fell 14% to €85bn. Deliveries in North America fell 18% year on year, with a significant margin decline, mainly due to lower volumes and unfavourable product mix.
Carlos Tavares, chief executive, said the company's underperformance in the first half reflected both the challenging industry environment and its own operational issues. The company was taking corrective measures to address these issues and expected to save another €500m in the second half, while confirming it would launch 20 new vehicles this year.