General Motors Stock Halted, Edge Higher On Q2 Chip Shortage Hit
Updated at 2:26 pm EST
General Motors (GM) – Get General Motors Company Report cautioned Friday that chip shortages and supply chain disruptions lead to production delays that impacted around 100,000 vehicles, but reiterated its full-year profit forecasts.
GM said the 96,000 vehicles, which sit in the group’s broader inventory, were missing certain components that will delay their ultimate sale. Still, GM said second quarter U.S. sales were down 15.4%, although that tally came in under the Street estimate of around 17.1%.
The carmaker added in the Securities and Exchange Commission filing that it fully expects to shift the units before the end of the year, and repeated its view that adjusted 2022 earnings will come in between $6.50 and $7.50 per share, with operating free-cash flow from operations of between $16 billion and $19 billion.
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Second quarter net income was pegged at between $1.6 billion and $1.9 billion.
“GM’s sales and market share have grown each of the last three quarters, even with lingering supply chain disruptions,” said executive vice president and president, North America Steve Carlisle. “Our long-term momentum will continue to build thanks to the launches of groundbreaking new EVs like the GMC Hummer EV and Cadillac LYRIQ, and the tremendous customer response to the Chevrolet Silverado and GMC Sierra.”
GM shares were halted from trading on the New York Stock Exchange prior to its SEC 8-K filing and were last seen 0.94% higher in early afternoon trading and changing hands at $32.06 each, a move that would trim the stock’s year-to-date decline to around 46%.
