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General Motors lifts 2022 profit forecast after mixed Q1

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·1-min read
General Motors lifted its 2022 profit forecast as strong vehicle pricing boosts results (AFP/JEFF KOWALSKY) (JEFF KOWALSKY)
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General Motors lifted its 2022 net income forecast Tuesday following a mixed quarter as it benefitted from strong consumer demand amid high vehicle prices despite lingering supply chain problems.

The big US automaker now sees 2022 net profit of between $9.6 billion and $11.2 billion, up slightly from the prior range.

Net income in the first quarter dipped three percent to $2.9 billion on an 11 percent jump in revenue to $36 billion.

GM's auto deliveries declined in all its operating regions in the wake of supply chain shortages, especially a crunch of semiconductors that has curtailed production intermittently at some factories.

Chief Executive Mary Barra told reporters the chip supply remains "volatile" but had improved compared with the fourth quarters.

But tight vehicle inventories have enabled GM to lift prices, especially on popular trucks and crossover vehicles, the company said.

Executives said they have not seen evidence rising inflation and interest rates are preventing sales overall.

"We continue to see a strong pricing opportunity because there is strong demand for our product," Barra said on the conference call.

Among GM vehicles, the Chevrolet Silverado averaged $51,240 during the quarter, while the GMC Canyon went for $41,660. Both vehicles were up more than nine percent compared with 2020, according to data from Edmunds.com.

GM's earnings per share topped analyst expectations, but revenues lagged.

GM shares edged up 0.1 percent to $38.09 in after-hours trading.

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