Adj EBIT rose 17 in H2 to 10.949 bln euros
FY margin on adj. EBIT at 13
Announces 1.34 euro per share dividend
To launch 1.5 bln euro buyback programme
Expects double digit margin, positive cash in 2023

MILAN, Feb 22 Reuters Fiat, Ram and Peugeot maker Stellantis beat profit forecasts on Wednesday due to strong car prices and greaterthanexpected merger benefits, but warned of pricing pressure as industrywide supply chain problems ease.

Automakers globally have been hit by several supply problems stemming from the global coronavirus pandemic, with the worst a shortage of semiconductor chips that has hit their production.

Amid strong demand, that shortage has allowed carmakers to raise prices and Stellantis said its fullyear 2022 operating profits had jumped 29, despite a 2 drop in vehicle deliveries.

Pricing power is going to be under pressure because of the rebalancing of supply and demand, CEO Carlos Tavares said.

He added that the semiconductor crisis had mostly been caused by major firsttier suppliers struggling to manage their own supply chains, but most now have that under control.

Production is now okay, it39;s not perfect because we don39;t always build the cars we would like to build … The number of troublemakers is now limited to one or two big Tier 1 suppliers, Tavares said.

We believe that through the very strong order book that we have, we have some time to adapt … The name of the game is to reduce total production costs faster than the…