Bad blow for Stellantis and Cnh, lost over 17 billion euros on the stock market
To worry them Agnelli-Elkann he is not alone Stellar. After the terrible quarterly results of the automotive group, with car sales reduced by 10%, the financial statements are also affected by Cnh Industrial.
The company, specialized in the production of industrial vehicles, closed the first quarter of 2024 with a Net income of 402 million dollars, down 17.2% compared to the same previous period. Among other data, i revenues fell 10% to $4.818 billion, while earnings per share went from $0.35 to $0.31.
“In the first quarter, Cnh went through a declining market context – comments the CEO Scott Wine – as industrial demand continued to decline especially in South America and Europe. Anticipating these obstacles, we are continuing to improve what we can control: manufacturing efficiency, disciplined business execution, reasonable reductions in operating expenses, and thoughtful investments in products and technologies.”
Stellantis and Cnh burned almost 17 billion on the stock market in less than a month
But not only the results, it is also interesting to note the financial implications resulting from the redundancy in the accounts. Looking at the data, Cnh it has lost 0.5% on the stock market in the last 24 hours. In the last month, however, the red on the Dutch price list is close to 10%.
Same thing, but more dramatic, though Stellar. The group that owns the brands Ferrari, Fiat e Alfa Romeo to name a few, compared to yesterday, it is in positive territory, but in the last month the red shows -19.22. Not a little.
Doing the math, the capitalization of the two companies has dropped significantly. In the case of Cnh, in the last 30 days the stock has lost over 1.6 billion euros. While Stellarfor its part, burned 16 billion and 790 million.
Bad news, therefore, for the Agnelli-Elkann familywhich he possesses through Exor (the holding company of the Turin family) 14.9% of Stellar and 29.2% of Cnh Industrial. As of today, Friday 3 May, Cnh’s capitalization is equal to 16.3 billion euros, while that of Stellantis is at 64.02 billion euros.
Risks for jobs and the entire Italian automotive supply chain
But the bad news isn’t just about money. Indeed, the collapse of an automotive giant such as Stellar o Cnh could have a significant impact on the Italian economy, with potentially negative consequences that extend far beyond loss of jobs and the reduction of industrial production.
First of all, the cascade effect on the entire production chain must be considered. Stellar It has a vast network of suppliers and business partners in Italy, which means that its crisis could also put at risk the survival of many small and medium-sized businesses that depend on its orders. This could lead to a increase in unemployment not only in sectors directly linked to the automotive sector, but also in related ones.
Finally, we cannot ignore the psychological and emotional impact on the entire Italian economy. The collapse of a company like Stellar o Cnh it could in fact undermine investor and consumer confidence, leading to a contraction in economic activities and a decrease in investments in the country.