General Motors has reported net income for the second quarter of $1.7bn, some 40% down on the same quarter last year, as it continued to be adversely impacted by supply chain disruptions.
However, it said the results – revenues were up to $35.8bn (Q2 2021: $34.2bn) – also reflected strong demand for its truck products, including the Chevrolet Silverado and GMC Sierra, and full-size Chevrolet, GMC and Cadillac SUVs. It said they continued their market leadership despite low inventories.
EBIT-adjusted operating profit was posted at $2.3bn for the quarter, 43% down on last year’s level.
Global deliveries for GM in the second quarter were 1.4m, which compares with 1.8m last year.
In a statement, GM chief Mary Barra said the company’s outlook for the second half is strong, and the company is reaffirming its full-year earnings guidance that includes EBIT-adjusted of between $13 billion and $15 billion. “This confidence comes from our expectation that GM global production and wholesale deliveries will be up sharply in the second half,” Barra said.
Barra also acknowledged worries over economic conditions and said GM is taking actions. “That’s why we are already taking proactive steps to manage costs and cash flows, including reducing discretionary spending and limiting hiring to critical needs and positions that support growth,” she said. “We have also modelled many downturn scenarios and we are prepared to take deliberate action when and if necessary.”
This year GM has benefitted from high new vehicle transaction prices in the supply shortage – especially in North America – which have helped to maintain revenues in spite of lower unit sales. GM reported EBIT-adjusted for GMNA in Q2 at $2.3bn (compares with $2.9bn in same quarter last year).