After the balance sheet results were released, the company’s shares were down 3.5% by mid-morning.
The CEO, Mary Barra, said the company “is already taking proactive steps to manage costs and cash flows” in the event of a possible slowdown in the economy.
“In addition, we have modeled various slowdown scenarios, and we are prepared to take more deliberate action when and if necessary,” he added on a conference call with analysts.
For his part, Barra said GM is modeling a moderate slowdown in its planning, not a severe one. He also argued that the impact of the global chip shortage will last until next year.
The company, a benchmark in US and global automobile manufacturing, has taken steps to counter rising inflation and other challenges, Chief Financial Officer Paul Jacobson said.
“We’ve slowed down some hiring and deferred some costs and expenses that we were going to have this year to try and balance that against the pressure that we’ve seen from both inflation and some of the other supply chain challenges,” Jacobson told reporters at a press conference. phone conference.
However, Jacobson said GM sees large pent-up demand for its vehicles, in stark contrast to warning from US retail giant Walmart Inc., which on Monday said consumers are cutting back on discretionary purchases.
The automaker reaffirmed its full-year net profit forecast of between $9.6 billion and $11.2 billion.and adjusted earnings before interest and taxes (EBIT) from among $13 billion Y $15 billionwith a considerable increase in world deliveries in the second half of the year.
According to final balance sheet data, the firm’s second quarter net profit was $1.7 billioneither u$s1.14 per share, one 40% less that the $2.8 billioneither u$s1.90 per share, from the previous year. Analysts had expected $1.20 a share, according to Refinitiv data. And for the sales made the Revenue rose nearly 5% to $35.8 billion.
Source: Ambito
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