Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Pricey models help GM outrace first-quarter supply chain snarls

Stock Markets Apr 26, 2022 05:45PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: The new GM logo is seen on the facade of the General Motors headquarters in Detroit, Michigan, U.S., March 16, 2021. REUTERS/Rebecca Cook

By Paul Lienert and Joseph White

(Reuters) -General Motors Co's first-quarter profit beat analyst estimates on Tuesday, as the automaker focused on sales of more expensive models with higher margins, even with production still limited by chip shortages and supply chain disruptions.

GM's net income dipped slightly to $2.9 billion in the quarter, compared with analysts' estimates of $2.45 billion, as higher prices were not enough to offset an increase in costs.

But Chief Executive Officer Mary Barra delivered an upbeat message to investors: "We continue to see a strong pricing opportunity because there is demand for our product."

GM shares were flat in after-hours trade at $38.

"While the results exceeded expectations, and marked a much-needed positive data point for the stock, we believe the core investor question is whether this earnings power can be maintained amid rising inflationary pressures," Credit Suisse (SIX:CSGN) analyst Dan Levy said in a research note.

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 said it expects full-year net income of $9.6 billion to $11.2 billion, and reaffirmed its full-year outlook for adjusted EBIT of $13 billion to $15 billion.

On the same day that rival Ford Motor (NYSE:F) Co launched regular production of its new F-150 Lightning electric pickup, Barra said GM has received 140,000 reservations for the new Chevrolet Silverado EV truck that is still nearly a year away from production.

GM reaffirmed a goal to build 400,000 electric vehicles this year and next, but in the latest quarter the company had just a 0.3% share of the electric vehicle market in the United States.

Barra said the company now will peg part of its executive compensation to EV performance targets, including sales volume and launch timing.

The automaker will begin selling the new Cadillac Lyriq electric SUV later this year in North America and China.

GM's China equity income in the quarter was $234 million, down from $308 million a year ago. China revenue dropped to $9 billion, from $9.9 billion a year earlier.

GM's first-quarter revenue of $36 billion was up 11% from $32.5 billion a year ago. Diluted earnings per share were $1.35, compared with $2.03 a year earlier.

Pricey models help GM outrace first-quarter supply chain snarls

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email