(Boursier.com) — General Motors revised its profit and sales forecast for the second quarter of 2022 sharply downward on Friday, due to component shortages and supply chain problems, which prevented it from completing production of many vehicles, inflating its stocks awaiting delivery…
The leading American automaker has thus indicated that its vehicle sales in the United States fell 15% in the second quarter compared to the 2nd quarter of 2021, to return to 582,401 units. Despite this, GM says it gained market share during the period, as the entire industry faced similar supply chain challenges.
As of June 30, inventories of vehicles manufactured by GM but missing certain components reached 95,000 units, the group said in a statement.
Net profit for the quarter is now expected between $1.6 billion and $1.9 billionwhile analysts polled by the firm FactSet predicted $2.46 billion.
On Wall Street, GM’s stock price initially fell after the news, but then rose 1.2% to $32.16 in the session. It must be said that the title has already lost 45% of its value since the beginning of the year.
Full year guidance confirmed despite Q2 delays
The group also reaffirmed its guidance for 2022, saying it expects all of these vehicles to be completed and sent to dealerships by the end of the year. GM therefore still expects net income of $9.6 billion to $11.2 billion in 2022, in line with median consensus expectations of $10.24 billion.
Cox Automotive expects overall vehicle sales in the United States to fall 19.3% in the second quarter compared to the same period in 2021. However, the bad news could already be priced in in the share prices of the sector, which have suffered heavy losses since the beginning of the year.
So, after GM’s announcements, the title Ford-Motor gained 1.6% on Friday on the New York Stock Exchange, but has lost 45% since January 1, while Stellantis (particularly parent company of FiatChrysler) gained 0.2% (-34% since January 1) and that You’re here was up 0.8% (-35.6% since the start of 2022).