General Motors Co GM shares are trading higher Friday morning after the company updated its guidance for the second quarter as a result of supply chain disruptions.
GM's Friday Update: GM said second-quarter vehicle production was strong. The company finished the month with 247,839 vehicles in dealer inventory. Yet GM’s second-quarter vehicle wholesale volumes were impacted by the ongoing semiconductor supply shortage and other supply chain disruptions (mostly in June).
As a result, GM said it will hold back about 95,000 vehicles that were manufactured without certain components in company inventory until they are fully completed.
The company said it expects to recognize the revenue when the vehicles are sold to dealers, which is expected to occur throughout the second half of 2022.
GM's full-year earnings guidance remains unchanged, but the company now expects softer second-quarter results.
For the three months ended June 30, GM said it expects net income to be between $1.6 billion and $1.9 billion and "EBIT-adjusted to be in the range of between $2.3 billion and $2.6 billion."
"We appreciate the patience and loyalty of our dealers and customers as we strive to meet significant pent-up demand for our products, and we will work with our suppliers and manufacturing and logistics teams to deliver all the units held at our plants as quickly as possible," said Steve Carlisle, GM executive vice president and president, North America.
Other Highlights: GM said second-quarter sales were down 15% year-over-year, but market share was up 1 point to an estimated 16.3%.
GM’s commercial, government and daily rental deliveries were up a combined 29%. Sales to commercial and government customers were 73% of the fleet sales mix. The company also sold over 7,300 electric vehicles during the quarter.
GM Price Action: GM has traded between $67.21 and $30.65 over a 52-week period.
The stock was trading 2.83% higher at $32.66 at press time, according to data from Benzinga Pro.
Photo: courtesy of GM.
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