Stellantis Nevada (NYSE:STLA) stock fell on Monday after revising its price Financial guidance for 2024 To reflect its remedial actions to North American performance issues and deterioration in global industry dynamics. Automotive competitors, incl General Motors Company (NYSE: General Motors) and Ford Motor Company (NYSE:F), is trading lower in sympathy with Stellantis.
The company expects an adjusted operating margin for fiscal 2024 of 5.5% – 7.0%, down from the previous operating margin. Double-digit growth forecast.
It now expects fiscal 2024 industrial free cash flow of negative €5 billion – negative €10 billion versus the previous positive cash flow forecast.
The automaker is targeting 330,000 units of dealer inventory by the end of 2024 in the United States, from a previous timing target of the first quarter of 2025.
The company’s remediation measures include North American shipments falling by more than 200,000 vehicles in the second half of 2024 (up from 100,000 prior guidance) compared to the prior-year period, increased incentives on 2024 and older model year vehicles, and productivity improvement initiatives.
In July, Stellantis NV reported a 14% decrease in the main lineIts revenues reached 85 billion euros ($91.53 billion) in the first half of 2024. Combined shipments fell by 12%, and net profit fell by 48%.
On a positive note, The US Federal Reserve lowered It cut the lending rate by 50 basis points, lowering the central bank’s benchmark interest rate to 4.75%-5% to stimulate demand. Analysts expect the reduction to drive growth in discretionary spending.
Stellantis stock is down more than 30% year to date.
Price action: STLA stock is down 13.3% at $13.91 in the premarket at last check on Monday.
Photography by Jonathan Weiss on Shutterstock
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