The automaker General Motors announced Tuesday its Q2 2022 Earnings Results reporting earnings per share of $1.14 and operating profit of $2.343 billion from sales of $35.759 billion. The automaker said it continues to expect to meet its full-year earnings guidance that includes EBIT-adjusted of between $13 billion and $15 billion.Wall Street consensus for EPS of $1.31 and $2.4 billion for operating profit while $37.4 billion from sales.
Letter to Shareholders | CEO Mary T. Barra
“Our results also reflect strong demand for our products, including the Chevrolet Silverado and GMC Sierra, and our full-size Chevrolet, GMC and Cadillac SUVs, which continued their market leadership despite low inventories.
Our outlook for the second half is strong, and we are reaffirming our full-year earnings guidance that includes EBIT-adjusted of between $13 billion and $15 billion. This confidence comes from our expectation that GM global production and wholesale deliveries will be up sharply in the second half. It is clear we are operating in a dynamic market that presents both challenges and opportunities for our company, and we will continue to rise to them,” the CEO said.
“We have been operating with lower volumes due to the semiconductor shortage for the past year, and we have delivered strong results despite those pressures. There are concerns about economic conditions, to be sure. That’s why we are already taking proactive steps to manage costs and cash flows, including reducing discretionary spending and limiting hiring to critical needs and positions that support growth.
We have also modeled many downturn scenarios and we are prepared to take deliberate action when and if necessary. Regardless of the circumstances, we will continue executing from a position of strength. We have strong earnings and cash flow, an investment-grade credit rating, historically low pension obligations, great vehicles and services, and record pricing. All of this will help us continue to execute our EV- and AV-powered growth strategy and insulate it from short-term challenges”.
GM has also done something unique in the industry to help secure our future EV production. We have binding agreements securing all battery raw material to support our plan for 1 million units of annual EV capacity in North America in 2025. These are commitments with strategic partners for key materials like lithium, cobalt and nickel.
This includes new multi-year agreements announced today by Livent Corp., for lithium, and LG Chem, for cathode material. Going forward, we will continue to mitigate risk and drive down costs to help us deliver $90 billion of annual EV revenue by 2030. As you can see from these examples, every part of the company is rising to meet today’s challenges. I’m proud of the GM team’s determination, resilience and agility. It’s not just when faced with external pressures – they look for ways to move the company forward every day.
Thank you for your continued confidence in the GM team,” Barra concluded.
GM expects to have a net income of between $9.6 billion and $11.2 billion, and EBIT-adjusted of between $13.0 billion and $15.0 billion in 2022 and an adjusted automotive free cash flow guidance range of between $7.0 billion and $9.0 billion.