By Giulio Piovaccari and Gilles Guillaume
MILAN (Reuters) -Stellantis shares slid as much as 11% on Thursday as the maker of Fiat, Peugeot and Jeep flagged one-off charges related to changes in regulation, strategy and products, adding to underlying investor concerns over a sector chip shortage.
The Franco-Italian group reported a 13% rise in third-quarter revenue, its first top-line growth after seven quarters, and reiterated forecasts for higher revenue, improving cash flow and low-single digit margins in the second half.
But it also flagged one-off charges in the current half from changes to its strategic and product plans, including a pivot back to hybrids after an earlier push into electrification, and warranty extensions for flawed products including some engines.
“We took important decisions, such as product actions and major investments … that have restored the freedom to choose (for our clients),” new CEO Antonio Filosa told analysts.
‘VAGUE’ GUIDANCE KNOCKS SHARES
While Stellantis CFO Joao Laranjo tried to reassure investors that the charges were not expected to have a major impact on its outlook, the company’s Milan-listed shares were down 9.3% by 1530 GMT.
Jefferies analysts called Stellantis’ guidance “vague” and flagged the upcoming charges as a concern, while Citi analysts said that the impact on free cash flow remained unclear.
Stellantis said its forecasts were assuming no disruptions or shortages in current supply chains, but the sector outlook is being clouded by a deepening semiconductor crunch from U.S.-China trade war-related issues at Dutch firm Nexperia.
Filosa said Stellantis has set up a “war room” to develop daily “actions and projects” to extend production continuity and avoid factory stoppages.
U.S.-China trade tensions, including on semiconductors, could ease after U.S. President Donald Trump said on Thursday that he had reached a deal with President Xi Jinping.
SALES BACK ON THE RISE
Appointed CEO in June, Filosa is steering a turnaround in the U.S., where the world’s fourth-largest automaker has faced declining sales and bloated inventories — issues that contributed to the departure of former chief Carlos Tavares.
“We quickly changed our organizational structure to restore proximity to our customers, dealers and suppliers,” said Filosa.
Stellantis this month pledged $13 billion to ramp up U.S. production and offset tariffs. On Thursday it estimated a 1 billion euro ($1.2 billion) impact from current U.S. trade policies in 2025, at the lower end of its previous forecast.
Filosa, who will present his business plan in the second quarter of 2026, has announced other moves, including booking billions of euros of pre-tax charges in the first half, bringing back popular models such as Jeep Cherokee SUV, and refocusing towards hybrid and petrol vehicles.
For July to September, net revenue rose to 37.2 billion euros, on strong performances in North America and Europe. This was in line with a Reuters poll of analysts and preliminary sales data from Stellantis this month.
($1 = 0.8575 euros)
(Reporting by Giulio Piovaccari in Milan and Gilles Guillaume in Paris; additional reporting by Keith Weir in London; writing by Giulio Piovaccari; editing by Emelia Sithole-Matarise and Alexander Smith)
