© Reuters. FILE PHOTO: A flag with the logo of Stellantis is seen at the company's corporate office building in Saint-Quentin-en-Yvelines near Paris, France, May 5, 2021. REUTERS/Gonzalo Fuentes/File Photo 2/2 STLAM +1.61% Add to/Remove from Watchlist Add to Watchlist Add Position Position added successfully to:
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MILAN (Reuters) - Stellantis (NYSE:STLA) said on Tuesday the strikes in North America over pay increases would cost it less than 750 million euros ($795 million) in terms of profitability, after a negative impact on group revenue of around 3 billion euros.
Unions' unprecedented six-week campaign of coordinated strikes in the United States and Canada, which started last month and expanded in October, are ending this week after tentative agreements that won record salary increases for workers at the Detroit Three automakers.
Chief Financial Officer Natalie Knight, who started the job in the summer, said on a media call that the 750 million euro impact on profitability was the smallest among the Detroit Three.
"We're looking at everything in terms of where should we approach (mitigation actions). And I think you will continue to hear more about that mitigation as we go forward," she said in a media briefing.
Presenting its third-quarter sales results, Stellantis on Tuesday confirmed its forecast for a double-digit margin on adjusted operating profit and positive industrial free cash flow this year.
"We believe we continue to be in a very strong position globally and in the U.S.," Knight said.
Net revenue at the world's third largest automaker rose 7% in the July-September quarter to 45.1 billion euros, topping the 43.7 billion expected by analysts in a Reuters poll.
The increase was mainly due to improved volumes and consistent pricing power but was partially offset by foreign exchange rates, the company said in a statement.
Consolidated shipments rose 11% in the quarter to 1.427 million vehicles, Stellantis said.
(This story has been corrected to say Tuesday, not Thursday, in paragraph 1)
Stellantis says it least affected by N.America strikes among Detroit Three
