Stellantis shares surge after posting record results

Shares in US-European automaker Stellantis jumped after it posted record 2021 profits despite producing 1.6 million fewer cars than planned due to a semiconductor shortage. The group, which was formed in January last year when Fiat-Chrysler and PSA merged, reported sales of 152 billion euros ($172 billion) -- up 14 percent on the two combined figures of the two groups in 2020. Stellantis, which also includes the Jeep, Peugeot, Alfa Romeo and Citroen brands, saw net profit jump to 13.4 billion euros, nearly tripling the previous year's number, it said in a statement . After the announcement, its shares jumped by nearly five percent on the London Stock Exchange as of 0845 GMT. The group said in a statement it had "posted record results for 2021, accelerating the realisation of merger synergies and building solid commercial performance, driven by a clear focus on speed of execution from day one". It said its adjusted operating profit margin was 11.8 percent in 2021, and forecast another double-digit margin for this year. While shipments were down by three percent in its main market in Europe, revenue there rose by five percent due to an increase in hybrid and electric car sales, which are more expensive. Shipments fell in North America by two percent, but revenue surged by 15 percent, thanks partly to strong results from Jeep SUV and Ram trucks.

Stellantis CEO Carlos Tavares said that "today's record results prove that Stellantis is well positioned to deliver strong performance, even in the most uncertain market environments."

The board of directors will propose a dividend of 1.05 euros per share, or 3.3 billion euros. 

Some 1.9 billion euros will also be distributed to the group's more than 300,000 employees worldwide -- an increase of 70 percent from the previous year.

As well as struggling with the semiconductor shortage, the group had to deal with the rising prices of materials such as steel, aluminium, copper and plastics last year.