GM’s second quarter revenue and profit slides
General Motors’ profits and revenues fell in the second quarter, but automakers easily raise expectations and the company is stuck in full-year finances Prospects for decline in May.
GM CEO Mary Bala also said in a letter to shareholders Tuesday that the carmaker is “attempting to significantly reduce it.” Our tariff exposure“We’re quoting $4 billion in new investments in US assembly plants.
“In addition to our strong underlying operational performance, we position our business for a profitable, long-term future as we adapt to new trade and tax policies and adapt to a rapidly evolving technological environment,” she said.
For the three months ended June 30th, GM won $18.9 billion, or $1.91 per share. A year ago, the company won $2.93 billion, or $2.55 per share.
When certain items were removed, the revenue was $2.53 per share. It was a strong beating the analyst Factset voted at $2.34 per share.
Revenues fell from $47.97 billion to $471.2 billion, but remained above Wall Street’s estimated $45.84 billion.
Before the opening bell on Tuesday, shares still fell 3%.
Barra is optimistic about the electric vehicle market.
“Even though the EV industry is growing slowly, we believe that the long-term future is profitable electric vehicle production, and that this will continue to be our north star,” she writes. “As we adapt to changing demand, we prioritize our customers, brands and flexible manufacturing footprints, leveraging domestic battery investments and other profit improvement plans.”
The company maintained its full-year financial forecast. In May General Motors The car manufacturer lowered its profit expectations for the year as it was supported by potential impacts from Automatic fee By 2025 it reached $5 billion.
The Detroit automaker said at the time it expected annual adjusted revenue before interest and taxes in the range of $10 billion to $12.5 billion. This guidance includes current tariff exposures of $4 billion to $5 billion.
A month later, GM announced plans Invest $4 billion to move some production from Mexico to US manufacturing plants. The company said the investments would be made in the next two years at the time, and would be for gas and electric vehicles.
President Donald Trump signature The April executive order is a significant reversal as import taxes threatened to hurt domestic manufacturers to ease some of the 25% tariffs on automobiles and auto parts.
Automakers independent analysis shows that Customs It could raise prices, cut sales, and reduce production worldwide to lower competition. Trump portrayed the change as a bridge to automakers and a bridge to move more production to the US.
The tariffs ordered by Trump are colliding with the entire automotive sector, sending vehicles and parts repeatedly when assembled across the northern and southern borders of the United States. The Automated Research Center says a uniform tariff of 25% on all trading partners will increase costs by $107.7 billion for all US automakers, and a $41.9 billion increase in costs for three Detroit automakers. StellantisGM and Ford.
GM reported financial results the day after the Jeep Maker Stellantis Preliminary estimates state that US tariffs and heavy claims mark a net loss of 2.3 billion euros ($2.68 billion) in the first half of the year. Stellantis will release its financial results in the first half of the year, July 29th.