GM Affirms Profit Outlook Despite Chip-Shortage Woes
May 05 2021 - 7:43AM
Dow Jones News
By Mike Colias
General Motors Co. said it expects to hit the high end of its
estimated 2021 profit range, as strong pricing and brisk
new-vehicle demand helped offset the financial impact of a vexing
chip shortage.
GM reiterated its guidance Wednesday while reporting
first-quarter net profit of $3.02 billion, up from about $300
million a year earlier, when the coronavirus pandemic disrupted
operations. The company said the semiconductor shortage will hurt
second-quarter output but that it will continue to give priority to
its most profitable vehicles, large pickup trucks and sport-utility
vehicles.
The nation's largest auto maker by sales said pretax profit
adjusted for one-time items hit $4.42 billion, equivalent to $2.25
a share. That beat the $1.05 average estimate of analysts surveyed
by FactSet.
GM said it is confident that it will hit the high end of its
previously issued guidance of $10 billion to $11 billion for the
year, even as the impact from the semiconductor shortage cuts as
much as $2 billion from the bottom line.
Shares rose about 3% in premarket trading.
Write to Mike Colias at Mike.Colias@wsj.com
(END) Dow Jones Newswires
May 05, 2021 08:28 ET (12:28 GMT)
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