DETROIT—General Motors Co. said on Wednesday its quarterly profit was hit by the global semiconductor shortage that it sees continuing until late 2022, and offered a full-year profit forecast that disappointed Wall Street, sending shares down more than 3 percent in premarket trading. The Detroit automaker’s quarterly profit and revenue fell due to a drop in wholesale shipments to dealers amid the continuing chip shortage, as well as higher commodity and logistics costs. Credit Suisse analyst Dan Levy said in a research note: “Not the beat/guide raise we were looking for.” GM said the negative impact on earnings was partially offset by strong pricing on full-size pickups and SUVs and an agreement by supplier LG Electronics to cover most of the anticipated $2 billion in costs related to the recall of the Bolt EV and Bolt EUV. Analysts said some on Wall Street had not included the recovery in recall …
GM Outlook Doesn’t Impress, Sees Chip Shortage Continuing; Shares Drop
October 27, 2021
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