General Motors (GM) reported strong first-quarter earnings on Tuesday morning, continuing its strong quarterly reports as America’s largest automaker.
for the quarter GM said Top-line revenue was $40.0 billion, compared to Street estimates of $39.23 billion. GM’s adjusted EPS came in at $2.21, topping estimates of $1.72, on net income of $2.4 billion.
GM raised its full-year 2023 guidance, saying the company saw EBIT-adjusted revenue of $11.0 billion-$13.0 billion, compared with an earlier outlook of $10.5 billion-$12.5 billion. GM sees FY adjusted EPS in the range of $6.35-$7.35. $6.00-$7.00. GM projects adjusted automotive free cash flow of $5.5 billion – $7.5 billion, compared to its previous view of $5.0 billion-$7.0 billion.
“First quarter [results] came in ahead of our plans,” GM CFO Paul Jacobson said in a roundtable interview with Reports, while discussing why GM raised its full-year guidance.
Earlier this month the company reported its first-quarter U.S Distribution increased by 18% At 603,208 vehicles, the automaker estimated its U.S. market share at 1.3%, the largest of any company in the industry, according to GM.
GM recorded 20,670 electric vehicle deliveries, though most of those were Chevrolet Bolt EVs and EUVs — GM only delivered two Hummer EV pickups and 968 Cadillac LYRIQ EVs. GM also updated its EV launch plans for 2023, with Silverado EV deliveries beginning in late Q2 to about 340 fleet customers, with production ramping up in Q2. GM said the Chevy Blazer EV will be introduced this summer, and the Chevy Equinox EV will be introduced this fall. GM previously said the Equinox EV would start around $30,000.
On the EV front, GM announced today that it and partner Samsung SDI plan to invest more than $3 billion in a battery plant that will be GM’s fourth plant in the U.S. “The cells we’re developing together will help scale our EV capacity to more than 1 million units annually in North America,” GM CEO Mary Barra said in a statement.
in her Shareholder letterBarra also reiterated GM’s plan to produce 400,000 EVs in 2022, 2023 and the first half of 2024, including 50,000 EVs in North America in the first half of this year and 100,000 EVs in the second half.
On a smaller note, GM’s China business saw net revenue and total deliveries decline significantly quarter-over-quarter and year-over-year. GM said the decline in the China business was “primarily due to challenging industry conditions resulting in lower volumes, mix deterioration and pricing pressure.”
On the operations front, GM initiated a voluntary buyout program for US salaried workers in Q1 and is expected to take a $1.5 billion charge as a result. GM said it would save $2 billion from the program and other cost-saving measures; So far 5,000 employees have opted into the program, which has been better than the company expected, GM CFO Paul Jacobsen said.
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