(Bloomberg) — General Motors Co. expects second-quarter sales and profit to take a hit due to supply chain problems, but the automaker said it can make up for delayed production later this year and reaffirmed its full-year guidance.
GM had 95,000 vehicles in inventory as of June 30 — most of them built in June — that can’t be sold until certain semiconductors arrive to finish assembly, according to a Friday securities filing.
The carmaker expects to finish building those vehicles by the end of the year, which will keep its full-year guidance intact.
The semiconductor shortage has eased, but carmakers continue to wrestle with availability for certain chips.
The shortfall has forced GM and others to either cut production at times or start vehicles without some chips and finish them when supplies arrive.
GM said second-quarter sales fell 15% due to production and supply issues.
As big a drop as that is, it’s a sign of improvement when compared to the second half of last year when supply chain problems caused a sales shortfall of more than 40%.
The company said it expects market share to have risen 1 percentage point in the quarter to 16.3%.
GM will likely retake the lead in US sales from rival Toyota Motor Corp., researcher Cox Automotive said this week.
Detroit-based GM said second-quarter profit will come in between $1.6 billion and $1.9 billion; the average of analysts’ estimates is $2.4 billion.
Despite the hit to quarterly sales, GM is sticking to its expectations of 2022 net income between $9.6 billion and $11.2 billion, adjusted operating profit of $13 billion to $15 billion and adjusted earnings of $5.76 to $6.76 a share.
The shares were temporarily halted in pre-market trading before the news was released.
The shares rose as much as 3.5% at the New York open.
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