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GM raises 2021 revenue guidance on pricing and better chip supply

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General Motors Slightly raises 2021 revenue guidance on strong pricing, Resilience consumer demand and better-than-expected supply of semiconductor chips.

Detroit carmakers’ new adjusted revenue guidance this year is around $ 14 billion, with guidance already raised between $ 11.5 billion and $ 13.5 billion, GMCFO Paul Jacobson said Wednesday.

“We are pleased to have experienced a bit of a tendency for costs and volume to tend to be higher than expected, primarily for chip availability,” at an investor event at Credit Suisse.

Jacobson also quoted “consumer continued strength” as a tailwind.He said GM is monitoring the impact “very, very closely” Covid omicron variant, However, it does not take into account the impact on that prediction.

GM’s share price rose more than 3% during trading Wednesday afternoon to about $ 59.75 per share. Automakers have a market capitalization of approximately $ 86 billion.

GM’s new guidance is likely to please investors and Wall Street analysts who are disappointed only by the company Guide to the “high end” Of the range when the results for the third quarter were announced in October.Automaker’s share has fallen After the third quarter results, it increased by 5.4% on October 27, followed by cross-town rivals. Ford motor I will give some guidance on the same day.

GM’s first adjusted revenue guidance this year was between $ 10 billion and $ 11 billion as it sought to explain the impact of an ongoing semiconductor chip shortage.

Due to a shortage of parts, vehicle inventories have been exhausted, and automakers, including GM, have sporadically closed their factories this year, if not months. However, due to low inventories, record funding and vehicle pricing profits are also increasing.

Jacobson refused to reveal GM’s earnings forecast for 2022, but said he expects it to be “another strong year” for automakers. According to Jacobson, GM does not expect vehicle inventory levels to improve to normalized quantities until 2022 and beyond.

“I’m sure we’re hoping that a strong consumer environment will continue into 2022,” he said. “I don’t think we’re close to normalized inventory, whether we’re looking at the past or the expectations of the future.”

GM raises 2021 revenue guidance on pricing and better chip supply

Source link GM raises 2021 revenue guidance on pricing and better chip supply

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