GM raises its 2023 earnings outlook

Even as GM raised its outlook for adjusted EBIT this year, the automaker lowered its full-year net income forecast to a range of $8.4 billion to $9.9 billion, from its previous outlook of $8.7 billion to $10.1 billion, largely because of the employee buyout cost .

GM said net income declined 19 per cent in the first quarter to $2.4 billion. Profit was reduced by $875 million for employee buyouts and $99 million in payouts to an unspecified number of Buick dealers who are giving up their franchise as the brand shifts to a fully electric lineup later this decade.

First-quarter adjusted EBIT fell 6 per cent to $3.8 billion. Global revenue rose 11 per cent to $39.99 billion.

In North America, pretax profits rose 14 per cent to $3.6 billion. Revenue for the region rose 12 per cent to $32.9 billion, which GM said was a first-quarter record.

Barra said GM also is “aggressively pursuing” cost cuts in China, where its sales have fallen and its equity income dropped by nearly two-thirds in the first quarter.

“The industry’s pretty tough right now,” Barra said of China, where GM is working to roll out more EVs to meet consumer demand.

Similar Posts