General Motors has adjusted its financial projections for 2024 following a strong performance that exceeded Wall Street expectations during the second quarter. The Detroit-based automaker has raised its anticipated adjusted earnings for the year to a range of $13 billion to $15 billion, compared to the previous forecast of $12.5 billion to $14.5 billion. Additionally, GM has increased its targets for operating cash flow and earnings per share, while slightly lowering expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, reflecting an increase of over 7% from the same period last year, surpassing the $45 billion anticipated by analysts. Earnings per share were reported at $3.06, exceeding the expected $2.71 and showing a 60% increase compared to 2023. Net income also rose by 14%, reaching $2.9 billion, up from $2.5 billion.
Following these results, GM’s stock rose nearly 5% in pre-market trading and has surged over 37% this year. The company also announced a third-quarter cash dividend after markets closed on Monday.
In a letter to shareholders, CEO Mary Barra highlighted the strong performance of GM’s gas-powered trucks and SUVs and mentioned that the company is preparing to launch eight new or redesigned models across various sizes in North America. She also confirmed that GM is ramping up production of the electric Chevrolet Equinox, expressing excitement about electric vehicles (EVs) while emphasizing a commitment to careful growth in volume.
However, Barra acknowledged that GM would not meet its target of producing 1 million electric vehicles in North America by the end of 2025, attributing this to a slowdown in the market. The company has stated it will adapt its production strategy to match demand, although it did see an increase in EV sales during the last quarter.
In her comments, Barra also addressed Cruise, GM’s self-driving division, which had to scale back operations after an incident last October. The company has decided to discontinue the Origin vehicle and will instead focus on using the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision is expected to reduce per-unit costs and better allocate resources, according to Barra, who emphasized the company’s commitment to transforming mobility through autonomous technology.
GM is also working on restructuring its joint venture in China with SAIC Motor, as it continues to face financial losses; the company reported a $104 million loss in the second quarter. Earlier, SAIC-GM decreased production by 70%, resulting in the delivery of 26,000 vehicles, which is 50% lower than the previous year, as reported by Automotive News.