GM Warns of Earnings Shortfall as Shortages Impact Volumes

By Dean Seal

General Motors Co. warned Friday that second-quarter earnings are poised to fall short of Wall Street expectations as continued supply chain disruptions impact its wholesale volumes.

The auto maker said in a regulatory filing that it expects to post a profit of between $1.6 billion and $1.9 billion in the quarter ended June 30. Analysts surveyed by FactSet had expected net income of $2.46 billion.

The company said the timing of certain semiconductor shipments and other supply chain issues hurt the quarter's wholesale volumes.

According to the filing, GM currently has 95,000 vehicles in its inventory that were manufactured without certain components due to the timing of semiconductor shipments and other disruptions in its supply chain.

The majority of the 95,000 vehicles were manufactured in June, GM said, adding that it aims to complete those vehicles and sell them to dealers by the end of the year.

The company backed its full-year financial guidance for net income of between $9.6 billion and $11.2 billion.

After being halted, GM shares slipped 2.2% to $31.10 in premarket trading.

Write to Dean Seal at [e-mail]

(END) Dow Jones Newswires

July 01, 2022 09:42 ET (13:42 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.