GM Warns of Earnings Shortfall as Shortages Impact Volumes
July 01 2022 - 9:57AM
Dow Jones News
By Dean Seal
General Motors Co. warned Friday that second-quarter earnings
are poised to fall short of Wall Street expectations as continued
supply chain disruptions impact its wholesale volumes.
The auto maker said in a regulatory filing that it expects to
post a profit of between $1.6 billion and $1.9 billion in the
quarter ended June 30. Analysts surveyed by FactSet had expected
net income of $2.46 billion.
The company said the timing of certain semiconductor shipments
and other supply chain issues hurt the quarter's wholesale
volumes.
According to the filing, GM currently has 95,000 vehicles in its
inventory that were manufactured without certain components due to
the timing of semiconductor shipments and other disruptions in its
supply chain.
The majority of the 95,000 vehicles were manufactured in June,
GM said, adding that it aims to complete those vehicles and sell
them to dealers by the end of the year.
The company backed its full-year financial guidance for net
income of between $9.6 billion and $11.2 billion.
After being halted, GM shares slipped 2.2% to $31.10 in
premarket trading.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
July 01, 2022 09:42 ET (13:42 GMT)
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