NEW YORK: General Motors lifted its 2022 net income forecast yesterday following a mixed quarter as it benefited from strong consumer demand amid high vehicle prices despite lingering supply chain problems.
The big US automaker now sees 2022 net profit of between US$9.6 billion and US$11.2 billion (RM41.8 billion and RM48.7 billion), up slightly from the prior range.
Net income in the first quarter dipped 3% to US$2.9 billion on an 11% jump in revenue to US$36 billion.
GM’s China equity income in the quarter was US$234 million, down from US$308 million a year ago. China revenue dropped to US$9 billion, from US$9.9 billion a year earlier.
GM’s first-quarter revenue of US$36 billion was up 11% from US$32.5 billion a year ago. Diluted earnings per share were US$1.35, compared with US$2.03 a year earlier.
GM’s auto deliveries declined in all its operating regions in the wake of supply chain shortages, especially a crunch of semiconductors that has curtailed production intermittently at some factories.
Chief executive Mary Barra told reporters the chip supply remains “volatile” but had improved compared with the fourth quarters.
But tight vehicle inventories have enabled GM to lift prices, especially on popular trucks and crossover vehicles, the company said.
Executives said they have not seen evidence rising inflation and interest rates are preventing sales overall.
“We continue to see a strong pricing opportunity because there is strong demand for our product,” Barra said on the conference call.
Among GM vehicles, the Chevrolet Silverado averaged US$51,240 during the quarter, while the GMC Canyon went for US$41,660. Both vehicles were up more than 9% compared with 2020, according to data from Edmunds.com.
Barra said GM expects to build 25%-30% more vehicles this year than last despite continued volatility in the supply of semiconductor chips, which the automaker expects to ease in the second half.
GM shares edged up 0.1% to US$38.09 in after-hours trading. – AFP, Reuters