Key things
- GM reported better-than-expected results and raised its full-year outlook.
- The automaker said it has seen strong demand for its trucks and SUVs.
- GM noted that this would increase cost-cutting and face difficulties in producing batteries for electric cars.
General Motors (GM) reported better-than-expected results and raised its outlook again, but concerns about the automaker’s austerity measures and electric vehicle (EV) production sent shares lower.
GM reported second-quarter fiscal 2023 earnings per share (EPS) of $1.91 on revenue up 25.1% to $44.75 billion. Both exceeded forecasts. The company also raised its outlook for 2023 for the second time this year, forecasting adjusted earnings of $12 billion to $14 billion, up from $11 billion to $13 billion previously.
CEO Mary Barra said the biggest driver of the strong financial report was “customer demand for our vehicles, which has now led the US industry in initial quality for two consecutive years.” CFO Paul Jacobson added that GM benefited from strong sales of trucks and SUVs as well as higher prices.
But GM explained that it had cut spending by $3 billion over the course of this year, instead of an earlier estimate of $2 billion. In addition, Jacobson noted that the company is having a “challenging” time to produce a new type of battery for use in its EVs. He said GM expects to produce 100,000 EVs in the second half of the year.
General Motors shares fell for the day but remained up for the year.
YCharts.