Mary Barra, CEO and chairman of GM, speaks during an “EV Day” on March 4, 2020 at the company’s technology and design campus in Warren, Michigan, a suburb of Detroit
GM
General Motors reported fourth quarter earnings on Wednesday that slightly exceeded Wall Street expectations. However, the company warned that a global shortage of semiconductor chips could cut its profits by $ 1.5 billion and $ 2 billion this year.
Automakers and suppliers warned of a semiconductor shortage late last year after vehicle demand rose faster than expected following a two-month shutdown of production facilities due to the coronavirus pandemic. GM has temporarily closed auto and crossover plants in Kansas, Canada, Mexico, due to the shortage, until mid-March. It has also reduced production in South Korea.
This is what GM reported versus Wall Street expectations based on average analyst estimates compiled by Refinitiv.
- Adapted EPS: $ 1.93 versus $ 1.64 expected based on average analyst estimates provided by Refinitiv.
- Revenue: Expected $ 37.5 billion versus $ 36.12 billion.
In November, John Stapleton, interim CFO of GM, told Wall Street analysts that GM is expecting pre-tax adjusted profits of approximately $ 8.5 billion and $ 9 billion for the second half of the year.
The automaker reported pre-tax adjusted earnings of $ 5.3 billion, or $ 2.83 per share, for the third quarter, while the fourth quarter would be weaker due to seasonality.
GM reported adjusted pre-tax profit of $ 105 million in the fourth quarter of 2019 due to a 40-day strike that affected vehicle production. Revenue for the quarter was $ 30.8 billion.
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