General Motors (GM) reported a 40.3% fall YoY in net income to $1.7bn due to loss in China and supply-chain disruptions for Q2. Revenues rose 5% to $35.8bn due to strong pricing and higher volumes. However, during the quarter, GM could not ship 100k vehicles on the back of a parts shortage. The net income and EBIT margins declined to 4.7% and 6.6% in Q2 2022 vs. 8.3% and 12% in the previous year respectively. EPS stood at $1.14 for the June quarter, lower than analyst expectations of $1.20. Adjusted automotive free cash flows declined 44% YoY to $1.4bn. For the whole of 2022, GM guided for a net profit of $9.6-11.2bn, an adjusted EBIT of $13-15bn, EPS of $6.5-7.5, free cash flow $7-9bn, and wholesale volume increase of 25-30%. GM CEO Mary Barra said in a statement, “GM has binding agreements securing all of the battery-related raw materials it will need to build 1mn electric vehicles annually in North America by 2025, including new multi-year agreements with Livent for lithium, and with longtime GM battery partner LG Chem for cathode material.”
GM’s 6.8% 2027 were down 0.4 to 106.8, yielding 5.2%.
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