Stellantis NV unveiled a share buyback of as much as $1.5 billion after posting record full-year results driven by high vehicle prices, a strong model lineup and positive currency effects.
(Bloomberg) — Stellantis NV unveiled a share buyback of as much as $1.5 billion after posting record full-year results driven by high vehicle prices, a strong model lineup and positive currency effects.
The purchases, which follow Mercedes-Benz AG and BMW AG, will be done in the open market until the end of the year, the maker of Jeep SUVs and Peugeot cars said Wednesday. Stellantis also said it expects another year of double-digit returns, even as the company continues to battle parts shortages and logistics challenges.
There has been “some improvement in our outbound transportation but it’s not complete yet,” Chief Financial Officer Richard Palmer said on a call with reporters.
Carmakers are still struggling to source enough parts, with logistics problems adding to the fray to delay deliveries. Truck driver and train shortages during the second half left thousands of cars stuck around at Stellantis’s Sochaux plant in eastern France, with peer Volkswagen AG also reporting that disruptions left it with a glut of unsold vehicles.
The difficulties in getting vehicles to car buyers are adding to manufacturers’ already long order books they say will buffer against a slowing global economy. While price cuts at carmakers including Tesla Inc. and Ford Motor Co. on EVs don’t bode well for the months ahead, Stellantis rival Renault SA this month said it expects rising returns after overhauling its model offering.
Stellantis, reporting a 13% margin for 2022 that beat expectations, said all of its regions were growing and delivering record profitability, including Europe. Returns during the second half of the year declined compared to the first because of the supply-chain snarls.
The manufacturer, formed from the merger of Fiat Chrysler and PSA Group, will pay a dividend of €1.34 a share, up from €1.04 the previous year.
Stellantis shares in Milan are up 20% this year.
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