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Q3 revenue 33 bln euros vs forecast 31.1 bln

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Total inventories down 129,000 on year to 1.33 mln

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US inventory reduction ahead of expectations - CFO

(Adds details, context)

MILAN, Oct 31 (Reuters) - Stellantis ( STLA ) reported

on Thursday a 27% fall in third quarter revenue, slightly better

than expected as the automaker pushed ahead with fixing bloated

inventories and poor commercial performance that led to a major

profit warning last month.

"Inventory reduction in the United States is running at a

faster rate than expected," new finance chief Doug Ostermann

said on a call, adding he expected to reduce inventories at U.S.

dealers by 100,000 vehicles ahead of an end-November target.

Stellantis ( STLA ) shares were up 0.7% at 0819 GMT. They have lost

about 40% of their value this year.

Ostermann, who previously headed Stellantis' ( STLA ) operations in

China, replaced Natalie Knight this month as part of a top

management reshuffle aimed at correcting strategic mistakes,

especially in North America.

Stellantis' ( STLA ) specific problems are combining with broader

struggles for Western automakers, including soft global demand,

especially for electric vehicles (EVs), technological transition

challenges, and increased competition from Chinese peers.

Europe's biggest automaker Volkswagen is

assessing plans to shut at least three factories in Germany and

lay off tens of thousands of staff, in a more radical than

expected overhaul, its works council head said this week.

Stellantis ( STLA ) on Thursday confirmed its recently reduced

full-year results guidance.

After posting a 40% decline in adjusted operating income

(EBIT) in the first half, Stellantis ( STLA ) last month forecast a

full-year adjusted operating profit margin of 5.5-7%, down from

a previous double-digit estimate, and cash burn of up to 10

billion euros. It also signalled possible cuts to its dividend

and share buybacks in 2025.

The group posted third-quarter revenues of 33 billion euros

($35.8 billion), beating analyst expectations of 31.1 billion

euros, according to a Reuters poll run after Oct. 16, when

Stellantis ( STLA ), for the first time, provided preliminary forecasts

on its quarterly unit sales and shipments.

Shipments fell 21% to 1.17 million vehicles. Gaps in the

product lineup were the main driver of the decline, Ostermann

said, though he added those gaps should start to close.

The company said it remained on track to launch

approximately 20 new models across 2024.

Stellantis ( STLA ) said total inventory stood at 1.33 million

vehicles as of Sept. 30, down 129,000 year-on-year. In the U.S.,

total inventory at dealers fell by over 80,000 between June 30

and Oct. 30.

($1 = 0.9215 euros)