General Motors has announced an increase in several financial targets for 2024 following a strong second-quarter performance that exceeded Wall Street expectations. The Detroit-based automaker has raised its projected adjusted earnings for the year to a range of $13 billion to $15 billion, an increase from its previous forecast of $12.5 billion to $14.5 billion. Additionally, targets for operating cash flow and earnings per share have been elevated, while expectations for net income attributed to shareholders have been slightly adjusted downwards to between $10 billion and $11.4 billion.
In its second quarter, GM reported revenue of $47.9 billion, which marks a more than 7% increase year-over-year and surpasses the $45 billion forecast by analysts. The company’s earnings per share reached $3.06, exceeding the projected $2.71, and reflecting a 60% increase compared to the previous year. Net income rose by 14% to $2.9 billion, up from $2.5 billion.
Following the announcement, GM’s stock experienced a nearly 5% rise in pre-market trading, contributing to a more than 37% increase in the stock’s value this year. The company also declared a third-quarter cash dividend after Monday’s trading session, further boosting its stock.
In a letter to shareholders, CEO Mary Barra emphasized the success of GM’s gas-powered trucks and SUVs and highlighted the company’s plans to introduce eight new or redesigned vehicles across various sizes in North America. Barra also mentioned the company’s efforts to ramp up production of the electric Chevrolet Equinox, while expressing a commitment to disciplined growth in electric vehicle production, despite acknowledging that GM will not meet its target of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown.
Barra noted that GM’s self-driving division, Cruise, will discontinue its Origin vehicle project, focusing instead on leveraging the next-generation Chevrolet Bolt for vehicle testing in Texas and Arizona. This change follows a previous incident that led to a rollback in operations for Cruise, costing GM $600 million in production halts for the Origin in Detroit. Barra reassured investors that the vision to transform mobility through autonomous technology remains unchanged.
In addition, GM is working to restructure its joint venture with SAIC Motor in China amid ongoing financial losses. The company reported a $104 million loss in the second quarter, while SAIC-GM had to scale down production by 70% with deliveries reaching only 26,000 vehicles, a 50% decline from the previous year.