Despite the headwinds of a semiconductor shortage, GM churned a net income of $3 billion on revenue of $32.5 billion in the first quarter of 2021.
Detroit — General Motors Co. delivered net income of $3 billion on revenue of $32.5 billion in the first quarter of this year, despite a global semiconductor shortage that cost the automaker months of downtime at some plants.
The shortage could lead to a $1.5 billion to $2 billion hit to earnings for the year, as GM noted before, but the automaker still expects to see pre-tax profits between the $10 billion to $11 billion range for the year. GM also provided a six-month guidance through June 30 of net income reaching about $3.5 billion, and pre-tax profits of about $5.5 billion, signaling a strong second quarter.
"While we will have production downtime in the second quarter, we expect to have a strong first half, with EBIT-adjusted of around $5.5 billion," CEO Mary Barra wrote in a letter to shareholders Wednesday. "We are also reaffirming our guidance for the full year, and based on what we know today, we see results coming in at the higher end of the $10 billion to $11 billion EBIT-adjusted range we shared earlier this year."
Since the start of the year, foreign and domestic automakers have battled the shortage of semiconductors, which are installed throughout a vehicle from seats and infotainment systems to instrument panels and engine controls.
Ford Motor Co. last week said it booked $3.3 billion in profit during the first quarter, but noted the shortage could cost the Dearborn automaker as much as $2.5 billion in pretax earnings. The Dearborn automaker expects to lose about 50% of the production it had planned for the second quarter, about 700,000 units, and for the year it's estimating a total loss of some 1.1 million vehicles.