(Bloomberg) — General Motors Co. is seeing signs of an easing in the semiconductor shortage that curbed vehicle output and dented its market share last year, but cautioned sales and profit for 2022 may be little changed.
The automaker on Tuesday reported fourth-quarter earnings that beat analysts’ estimates and forecast 2022 sales and profit within the range projected by Wall Street. Sales declined to $33.6 billion, missing the average Wall Street estimate of $34.5 billion.
“With an improving outlook for semiconductors in the U.S. and China, we expect our 2022 results will remain strong,” Chief Executive Officer Mary Barra said in a letter to shareholders.
Most automakers have cut production as they scramble to secure microchips. GM was hit among the hardest in the fourth quarter, when a 43% drop in domestic sales forced the company to relinquish its crown as top U.S. automaker for the first time since 1931. GM has vowed to regain lost market share as supply-chain problems ease.
Looking ahead GM sees 2022 results roughly in line with the year just ended. The company forecasts adjusted earnings before interest and taxes of $13 billion to $15 billion in 2022 and adjusted earnings per share of $6.25 to $7.25. That compares $14.3 billion in adjusted earnings last year and $7.07 a share.
Shares of the carmaker fell as much as 3.8% to $52 in extended trading after the announcement. The stock is down 7.8% this year.
Lower production has padded profit margins on the vehicles GM is selling as demand has exceeded supply. That allowed the automaker to report adjusted fourth-quarter profit of $1.35 a share, above the $1.20 a share average of analysts’ estimates but down from $1.93 a year ago.
GM’s adjusted fourth-quarter earnings before interest and taxes fell to $2.84 billion from $3.71 billion a year earlier.
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