General Motors on Tuesday reported a large fall in second-quarter earnings due to tight semiconductor shortages, although the automaker confirmed its full-year guidance amid strong prices.
Profit fell 40 percent to $1.7 billion as the Detroit giant was unable to ship more than 90,000 unfinished vehicles due to a lack of parts.
But the automaker said production will “rise sharply” in the second half of 2022.
Revenue rose 4.7 percent to $35.8 billion.
GM reported significantly lower auto deliveries in all regions, including China, where government restrictions related to the recent Covid-19 outbreak hurt sales.
A silver lining has continued to be limited dealer inventory, which has kept pricing strong. In the United States, the median price increased by $6,600 compared to the same period last year.
GM alluded to strong customer demand, “with most vehicles turning as soon as they arrive at dealerships,” the company said in a PowerPoint.
“We have been operating at lower volumes over the past year due to semiconductor shortages and have delivered strong results despite these pressures,” GM CEO Mary Barra said in a statement.
Alluding to concerns about a slowdown or recession, Barra said: “We have modeled many downturn scenarios and stand ready to take conscious action where necessary.”
Shares fell 1.3 percent to $34.08 in premarket trading.
#General #Motors #earnings #fall #supply #issues #confirms #forecast
