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GM shares tumble after profit warning as chip shipping timing and supply chain disruptions weigh

Shares of General Motors Co. (GM) fell 1.7% in premarket trading on Friday after the automaker warned of a second-quarter revenue shortfall as wholesale vehicle volumes took a hit. been affected by the timing of semiconductor shipments and other supply chain disruptions. The company expects net income for the quarter to June 30 to be between $1.6 billion and $1.9 billion, well below the FactSet consensus of $2.46 billion. The company, however, confirmed its outlook for the full year as supply disruptions are expected to be temporary. “[W]We had a total of approximately 95,000 vehicles in our inventory that were manufactured without certain components as of June 30, 2022, the majority of which were built in June,” the company said in a statement. “We expect that nearly all of these vehicles will be completed and sold to dealerships before the end of 2022.” GM still expects net income of $9.6 billion to $11.2 billion for 2022, which surrounds the FactSet consensus of $10.24 billion. shares of rival Ford Motor Co. (F) fell 46.4% and the S&P 500 fell 20.6%.

-Tomi Kilgore

 

(END) Dow Jones Newswire

07-01-22 0924ET

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