GM Closes at Highest Price Since Relisting "Q2 Earnings Expected to Improve Significantly"

[Asia Economy Reporter Byunghee Park] American automaker General Motors (GM) announced on the 3rd (local time) that its response to the semiconductor supply shortage has yielded better results than expected, and that its future performance is expected to improve significantly.

On the same day, GM's stock price on the New York Stock Exchange closed at $63.46, up 6.4% from the previous day. This was the highest closing price since it was delisted in June 2009 and relisted in November 2010. GM's stock price has risen 52% this year.

In a statement, GM disclosed information about engineering changes and the semiconductor situation. It also emphasized that the number of vehicle deliveries in the second quarter could increase significantly, and that the first half net profit is expected to improve considerably compared to earlier forecasts.

GM had previously forecasted a pre-tax profit of $5.5 billion for the first half of the year and an annual pre-tax profit of $10 billion to $11 billion. While GM expressed optimism about its full-year performance this year, it did not provide specific details.

GM posted a net profit of $2.98 billion in the first quarter of this year. It stated that strong demand and rising prices offset production disruptions caused by the semiconductor shortage.

Paul Jacobson, GM's Chief Financial Officer (CFO), said during an online discussion with Credit Suisse analysts in the afternoon that the semiconductor supply situation still appears unstable. He predicted that the semiconductor shortage would continue into the third quarter but expected conditions to start improving in the third quarter and to normalize at some point next year.

CFO Jacobson also stated that despite the semiconductor shortage, production is gradually increasing as expected a month ago. He explained that consumer demand is strong, especially for sport utility vehicles (SUVs) and pickup trucks.

This content was produced with the assistance of AI translation services.