The Global Semiconductor Shortage Remains Complex
Q2 Figures
Revenue exceeded the expected $30.9 billion as it amounted to $34.17 billion. On the other hand, adjusted EPS of $1.97 came lower than the expected $2.23 as they were drained by warranty recall costs of approximately $1.3 billion that include $800 million brought on by the recall of Chevrolet Bolt EV due to fire risks, the second time this year.
On an unadjusted basis, net income was $2.8 billion compared with last year's quarter loss of $758 million owed to the pandemic that caused shutdowns of its factories. Pretax adjusted earnings amounted to $4.1 billion for the second quarter, a record for the second quarter, topping GM's adjusted earnings before interest and taxes of $3.9 billion, or $1.86 a share, in 2016.
The Electric Pickup Is Coming
Startups such as Amazon-backed (NASDAQ:AMZN)) Rivian as well as legacy automakers such as Ford Motor and the EV pioneer Tesla Inc will have their electric pickup on the market by then.
Outlook
The legendary automaker raised its prior adjusted full-year guidance of $10 billion to $11 billion to a new range between $11.5 billion and $13.5 billion. It also expects commodity costs to rise by $1.5 billion and $2.0 billion along with lower earnings from its financial arm as it will continue to see the impact of the chip shortage both this year and into 2022.
The post GM's Record Q2 Operational Profit Dragged Down by Headwinds appeared first on IAM Newswire.
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