GM earnings: Q2 net income drops 40% to $1.7 billion
DETROIT — General Motors on Tuesday reported a 40 percent year-over-year decline in net income as revenue rose 4.7 percent in the second quarter, but the automaker said it expects stronger results in the second half of the year.
“This confidence comes from our expectation that GM global production and wholesale deliveries will be up sharply in the second half,” CEO Mary Barra said in a letter to shareholders. “It is clear we are operating in a dynamic market that presents both challenges and opportunities for our company, and we will continue to rise to them.”
GM’s second-quarter net income fell to $1.7 billion as the automaker continues to work through the global microchip shortage. Adjusted earnings before interest and taxes dropped 43 percent to $2.3 billion, while revenue rose to $35.8 billion, GM said in a statement.
Amid concerns of a looming recession, GM is reducing discretionary spending and limiting hiring to critical needs and positions that support the company’s growth, Barra said.
GM also said it expects to meet its current guidance for full-year adjusted earnings before interest and taxes of $13 billion to $15 billion. It earned $6.4 billion on that basis in the first half of 2022.
Shares in GM fell 3.7 percent to $33.25 in premarket trading.