GM Shares 6% Higher After First-Half Outlook

By Michael Dabaie

General Motors shares rose 6% to $63.04 around midday after the auto maker said it sees first-half results significantly better than its previous guidance.

GM Thursday outlined steps it is taking to increase deliveries to dealers and customers in the U.S.

GM cited its ongoing efforts to prioritize semiconductor usage and success engineering solutions that maximize the utilization of chips, as well as the pull-ahead of some projected semiconductor deliveries into the second quarter.

The company added it is optimistic about the full year.

"The global semiconductor shortage remains complex and very fluid, but the speed, agility and commitment of our team, including our dealers, has helped us find creative ways to satisfy customers," said Phil Kienle, GM vice president of North America manufacturing and labor relations.

The company in May guided for full-year per-share earnings of $4.28 to $5.03, and an adjusted profit of $4.50 to $5.25 a share. It expects full-year net income of $6.8 billion to $7.6 billion and adjusted earnings before interest and taxes of $10 billion to $11 billion.

For the six months ending June 30, GM guided for net income of about $3.5 billion, and adjusted EBIT of about $5.5 billion.

Write to Michael Dabaie at [e-mail]

(END) Dow Jones Newswires

June 03, 2021 12:42 ET (16:42 GMT)

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