Mary Barra, President and CEO of General Motors Company (GM), speaks during the Milken Institute’s global conference in Beverly Hills, California, on May 2, 2022.
Patrick T. Fallon | AFP | Getty Images
DETROIT – General Motors warned investors on Friday that supply chain problems would substantially affect its second-quarter earnings, while maintaining its previous focus for 2022.
The Detroit automaker said it expects net revenue for the second quarter to be between $ 1.6 billion and $ 1.9 billion and that pre-tax adjusted earnings will be between $ 2.3 billion and $ 2.6 billion.
Analysts expected GM’s net revenue to be about $ 2.5 billion during the second quarter, according to FactSet. GM did not previously provide a forecast for its second quarter.
Shares of the carmaker fell 2% after being briefly halted during pre-market trading, pending news.
The forecasts were part of a presentation by the automaker that revealed it has about 95,000 vehicles in its inventory that were manufactured without certain components on June 30, most of which were built in June. GM said it expects “substantially all of these vehicles” to be completed and sold to dealerships by the end of 2022.
Despite the problems, GM maintained its previously announced target for 2022, which includes net revenues of between $ 9.6 billion and $ 11.2 billion, pre-tax adjusted gains of between $ 13 billion and $ 15 billion, or 6.50 and $ 7.50 per share, and a free car adjustment. the cash flow targeting range of $ 7 billion to $ 9 billion.
In addition to inflation and other macroeconomic factors, the global auto industry has been struggling with supply chain problems caused by the coronavirus pandemic for more than a year, specifically the supply of semiconductor chips that are used in vehicles.
The presentation was released before GM reported its second-quarter U.S. sales, which were down 15.4% from a year ago.