(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.
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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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