Stellantis disappointed market expectations, announcing first quarter revenues down 12% due to lower volumes and unfavorable product mix and exchange rate dynamics balanced by a "tight" pricing policy.

However, the company is confident that new models will support growth and profitability in the second half of the year.

Net revenues amounted to 41.7 billion euros in the period, below analysts' expectations of 42.6 billion, according to a Reuters poll.

Around 10:25 a.m. Stellantis shares mark a 1.8 percent drop to 22.8 euros. Equita in the daily writes that it expects "a recovery later in the year with the launch of new models, but our revenue estimate on 20 at +2% to 192.7 billion loses visibility."

Cfo, Natalie Knight, stressed that deliveries and revenues were impacted by the transition to the group's new platform-based product portfolio and that Stellantis was reducing inventory "to strengthen our strong relative pricing ahead of new or mid-cycle product launches this year in key regions."

Deliveries at the consolidated level fell 10 percent in the quarter to 1.335 million units, the car company points out.

Knight added that the group is confident that its plan to launch 25 new models in 2024, including 18 all-electric (Ev) models, will help Stellantis improve growth and profitability in the second half of the year.

Stellantis has launched four new models since the beginning of the year.

Among the new launches mentioned by Knight is the RAM 1500 truck, due out these days, and later in the year Stellantis will launch other models including the low-cost Citroen eC3 Ev, the Peugeot E3008 Ev SUV, and the Jeep Wagoneer S in the United States.

"These are very successful products for us," he stressed, adding that the group is confident that the plan to launch new models "lays the foundation for a substantial improvement in growth and profitability in the second half of the year."

On Tuesday, Stellantis confirmed its 2024 forecast for double-digit Ebit margin and positive free cash flow.

(Giulio Piovaccari, written by Giancarlo Navach, editing Stefano Bernabei)