Stellantis STLA gained 4.34 percent, after revenue and net profit soared in 2022, year that has marked by a sharp rise in sales of electric vehicles to distribute $4.47 billion in dividends to shareholders and buy back shares worth $1.6 billion.
Supply chain issues brought on by the conflict in Ukraine and an increase in the number of COVID-19 infections in China, a significant automobile market, have hampered Stellantis and other car manufacturers.
On Wednesday, the company behind the Jeep and Dodge brands reported a 18% increase in year-over-year revenue of 179.59 billion euros, or $191.2 billion. Last year, Stellantis sold 288,000 electric cars worldwide, a 41% increase from 2021.
The automaker, which merged Fiat Chrysler and Peugeot maker PSA Group, aims to sell 5 million units worldwide by the decade’s end and more than double its electric vehicle lineup to 47 models by 2024.
Carlos Tavares, the chief executive officer of Stellantis, said that, they are talking about it, and they are doing it. In 2022, strong growth in China and Europe primarily drove global sales of electric vehicles to a 10% industry share for the first time. Carlos Tavares has expressed concern about how quickly consumers will adopt EVs, despite his goal of having all Stellantis sales in Europe and the United States fully electric by 2030.
According to Stellantis, the United Auto Workers union-represented hourly employees would receive a profit-sharing check for an average of $14,760. The payment is available to approximately 40,500 workers. The UAW and the company are scheduled to negotiate a new four-year labor contract in 2023.
In a call with reporters, Richard Palmer, Chief Financial Officer of Stellantis, stated that overall shipments for the year were down 2% to 5.8 million units as a result of difficulties with semiconductors, particularly in Europe during the first half and in North America during the second.
Annual results were impacted by inflation related costs by more than 9 billion euros. Energy and component costs totaled approximately 3 billion euros, while raw materials cost approximately 6.5 billion euros.
Carlos Palmer added that although he believes they were ahead of inflation in 2022, it was clearly a significant factor. They anticipate lower raw material inflation in 2023. Steel, in particular, is among the commodities that are retreating.
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