GM raises guidance after strong second quarter

General Motors Company raised its full-year guidance on Wednesday, after a bumper set of second quarter results, in which it reported revenue of $34.2bn, up from $16.8bn a year earlier.

The US carmaking giant said its EBIT-adjusted net income for the period came in at $4.1bn, swinging from a loss of $0.5bn in the second quarter of 2020, while its adjusted margin was 12%, compared to a negative 3.2% margin in the comparative period.

Automotive operating cash flow was $4bn, and adjusted automotive free cash flow totalled $2.5bn, compared to negative flows of $8bn and $9bn in the second quarter of last year, respectively.

Adjusted, diluted earnings per share were 197 US cents, swinging from losses of 50 cents per share a year ago, and beating expectations on Wall Street for earnings of 182 cents per share.

GM’s new guidance, issued with its results, were for full-year adjusted, diluted earnings per share of between 540 and 640 cents, and for EBIT-adjusted net income of between $11.5bn and $13.5bn.

“The company successfully prioritised production of its highest demand vehicles, gained significant retail market share in the full-size pickup segment in the United States and benefited from strong pricing and mix,” the company said in its press release.

“Additionally, high used vehicle prices due to low new vehicle inventories drove continued record results at GM Financial.

“Given the company’s first-half performance and its expectations for the rest of the year, GM is raising its full-year guidance.”

At 0932 EDT or 1432 BST, shares in General Motors Company were down 6.38% at 54.23p.