Stellantis posts modest Q3 operating income but burns €4 billion
Stellantis posts modest Q3 operating income but burns €4 billion MILAN, Oct 28 (Reuters) - Stallantis STLAM.MI said on Wednesday its operating income rose slightly in the third quarter as the automaker presses ahead with a slow turnaround process, which still generated a €4 billion ($4.45 billion) industrial cash outflow in the period.
The Fiat-to-Jeep maker said its adjusted earnings before interest and taxes (EBIT) amounted to €256 million in the July to September period, from €90 million a year earlier.
That was broadly in line with a consensus of €191 million from a Reuters poll of analysts, who were bracing for a weak quarter before an expected stronger performance in the final part of the year.
Third-quarter revenues were little changed at €37.6 billion, with slight increases in Europe and South America and a 3% drop in North America, which has historically been Stellantis' most profitable market.
The company on Wednesday confirmed its 2026 forecasts and a closely-watched target to return to positive cash flow generation in 2027, as it books benefits for a group-wide cost-cutting plan CEO Antonio Filosa launched this year.
"Our Value Creation Program has ramped up rapidly, with positive contributions being recognized in the quarter, and we remain on track to implement at least 40% of the total €6 billion in run-rate efficiencies by the end of this year," he said in a statement.
($1 = 0.8981 euros)
(Reporting by Giulio Piovaccari, editing by Alvise Armellini)