Strong first quarter revenues and earnings; full-year guidance lifted

Finance


General Motors (GM) reported strong first-quarter earnings on Tuesday morning, a strong quarterly report as the nation’s largest automaker gears up for a big year of electric vehicles. continues.

For the quarter, GM reported sales of $40 billion, beating market expectations of $39.23 billion. GM’s adjusted EPS was $2.21 for him, beating his estimate of $1.72 for net income of $2.4 billion.

GM also raised its full-year 2023 guidance, calling for the company’s adjusted EBIT earnings to be $11 billion to $13 billion, versus a previous guidance of $10.5 billion to $12.5 billion. GM sees adjusted EPS in the range of $6.35 to $7.35 for FY. $6.00-$7.00. GM also forecasts adjusted automotive free cash flow of $5.5 billion to $7.5 billion, compared with its previous guidance of $5.0 billion to $7.0 billion.

“Q1 [results] GM CFO Paul Jacobson said in a roundtable interview with the report when discussing why GM raised its full-year guidance.

GM said earlier this month that its U.S. sales rose 18% to 603,208 vehicles in the first quarter, increasing the automaker’s estimated 1.3% U.S. market share. bottom.

GM also reported a record 20,670 electric vehicle deliveries, mostly for the Chevrolet Volt EV and EUV. GM has delivered only two Hummer EV pickups and 968 Cadillac LYRIQ EVs. GM has updated his EV deployment plan for 2023, noting that deliveries of the Silverado EV will begin late in the second quarter to about 340 fleet customers, with production ramping up in the second quarter. GM also said that the Chevy Blazer EV is expected to go on sale this summer, and the Chevy Equinox EV will go on sale this fall. GM has previously said the Equinox EV will cost around $30,000.

And on the EV side, GM announced today that the company and partner Samsung SDI plan to invest more than $3 billion in battery factories. In North America, it’s well over one million units a year,” GM’s CEO Mary Barra said in a statement.

In a letter to shareholders, Barra reiterated GM’s plans to produce 400,000 EVs in 2022, 2023 and the first half of 2024. half.

GM’s China operations experienced significant declines in net sales and wholesale shipments quarter-over-quarter and year-over-year. GM said the decline in its China business was “mainly due to challenging industry conditions, including lower sales volume, worsening mix and price pressure.”

GM Chairman and CEO Mary Barra speaks at the unveiling of the Cadillac Celestiq electric sedan on October 17, 2022 in Los Angeles, California.  - Ultra-luxury, low-volume production, her Celestiq features a host of his 3D-printed parts for extensive customization. It's his second EV in the Cadillac lineup.  (Photo by Frederic J. BROWN/AFP) (Photo by Frederic J. BROWN/AFP via Getty Images)

GM Chairman and CEO Mary Barra speaks at the unveiling of the Cadillac Celestiq electric sedan on October 17, 2022 in Los Angeles, California. (Photo by FREDERIC J. BROWN/AFP via Getty Images)

Operationally, GM launched a voluntary acquisition program for US office workers in the first quarter, expected to result in a cost of $1.5 billion. GM said he will derive $2 billion in savings from the program and other cost-cutting measures. So far, he has had 5,000 employees participate in the program, which exceeds the company’s expectations (his Paul Jacobson, GM CFO).

Pras Subramanian is a reporter at Yahoo Finance.you can follow him twitter and Instagram.

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