(Bloomberg) -- Stellantis NV’s sales jumped in the first quarter on the back of strong vehicle prices and a range of new models like the Jeep Grand Cherokee even as shipments dropped due to supply-chain issues.
The maker of Ram and Fiat brands said net revenue rose 12% to 41.5 billion euros ($44.1 billion), the company said Thursday. Stellantis said positive currency effects also padded out the result while the carmaker stuck to an annual goal of a double-digit margin on adjusted operating income.
“Good product momentum and strategic partnerships continue to pave the way,” Chief Financial Officer Richard Palmer said in a statement, even as supply and inflationary headwinds weigh.
The shares rose as much as 5% in Milan trading, paring losses this year of about 20%.
Europe’s biggest carmaker’s consolidated shipments fell 12% during the quarter to 1.37 million, primarily because of unfilled semiconductor orders, it said. The issue was particularly acute in Europe, where deliveries cratered 24% and revenue declined, while North America offset this drag with a 30% jump in sales.
Supply-chain issues continue to plague most manufacturers. Output at Volkswagen AG has also slumped since the start of the year though the Stellantis rival on Wednesday forecast a significant recovery during the second part of the year.
Availability of semiconductors is expected to improve during the second half the year, even as the supply situation remains difficult to predict, Palmer said on a call with reporters.
In light of the war in Ukraine upending supply lines, Stellantis cut its market projection for Europe and North America. In Europe, it now sees a drop in sales of 2%, down from a growth expectation of 3%. The North American market is now likely to be stable, down from growth of 3%, it said.
Chief Executive Officer Carlos Tavares is pursuing plans to introduce more than 75 fully-electric models by 2030 with annual sales of 5 million vehicles, while maintaining double-digit returns through the end of the decade.
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