Basic Motors (GM) This autumn 2020 consequence

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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