(New York) U.S. automaker General Motors (GM) raised its full-year profit forecast on Tuesday after reporting better-than-expected first-quarter results on strong demand for its pick-up trucks. up and SUVs and high selling prices.
The turnover of the company led by Mary Barra increased by 11% over the period, to reach 40 billion dollars, details a press release.
The group explains that on the one hand it has sold more vehicles thanks to improvements in the supply chain which have enabled it to increase its production, constrained since 2021 by the lack of certain parts.
GM also notes that the strong demand for its products allows it to continue to raise prices.
Sales increased mainly in North America, which made it possible to offset the sharp drop in China.
At the same time, the company’s costs have increased due in particular to the increase in the costs of raw materials and logistics.
GM’s net profit fell 19% to $2.4 billion. Reported per share and adjusted for exceptional items, it is however higher than analysts’ expectations.
GM now expects earnings before interest and tax, the metric usually used by the group to reflect its profitability, of between $11 billion and $13 billion, down from a previous forecast of $10.5 billion and $12.5 billion. .
The group also raised its forecast of cash withdrawn from automotive activities.
Due to a charge of $900 million for the voluntary departure program offered to its employees in early March, the net profit forecast was lowered by a range between $8.7 and $10.1 billion. to a range between 8.4 and 9.9 billion.
The group’s stock rose 3.2% in electronic trading prior to the opening of the New York Stock Exchange.
GM, in order to diversify its production chain, has also announced a new partnership with the South Korean group Samsung SDI for an investment of more than 3 billion dollars in the construction of an electric battery factory in the United States. United.
The location has not been specified, but production is expected to begin in 2026.
GM already has a partnership with LG. The first plant of their joint venture Ultium Cells, in Ohio, is already in operation while a second, in Tennessee, should be launched at the end of the year and a third, in Michigan, in 2024 .
GM reiterated its goal of reaching production capacity of 1 million electric vehicles per year in North America by 2025.