General Motors Company (NYSE:GM) shares fell on Tuesday after the car-maker posted mixed 2Q earnings, including a 40% drop in its quarterly net income which the company attributed to supply chain issues such as the industry-wide semiconductor shortage.
For the three months ended June 30, 2022, General Motors reported a net income of $1.7 billion compared to $2.8 billion for the same quarter in 2021.
The company posted diluted earnings per share of $1.14, compared to $1.90 per share for the same period last year and falling below the Wall Street consensus expectation of $1.20.
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However, the company’s revenue rose nearly 5% to $35.8 billion, above the consensus analyst expectation of $33.6 billion and the $34.2 billion reported in the year-ago quarter.
In a letter to shareholders, General Motors CEO Mary Barra reaffirmed the company’s full-year earnings guidance based on its expectation that global production and wholesale deliveries would sharply increase in the second half of the year.
The company said it expected to report a full-year net income of between $9.6 billion and $11.2 billion, and full-year diluted earnings per share of between $5.76 and $6.76.
Barra also noted that the company was taking proactive steps to manage costs and cash flows, including reducing discretionary spending and limiting hiring to critical needs and positions that supported growth.
“Going forward, we will continue to mitigate risk and drive down costs to help us deliver $90 billion of annual EV revenue by 2030,” she said.
General Motors stock was down about 2.5% at 11.15am on Tuesday, trading at about $33.70 per share.
Contact the author Emily Jarvie at emily.jarvie@proactiveinvestors.com
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