Berliner Tageblatt - General Motors lifts 2023 forecast after strong Q1 results

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General Motors lifts 2023 forecast after strong Q1 results
General Motors lifts 2023 forecast after strong Q1 results / Photo: © AFP/File

General Motors lifts 2023 forecast after strong Q1 results

General Motors raised key 2023 profit projections Tuesday following a solid first quarter in which strong results in North America compensated for declines in other regions.

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The big US automaker reported profits of $2.4 billion, down 19 percent from the year-ago level, but translating to better-than-expected profits per share.

Revenues were $40 billion, up 11 percent.

Deliveries rose in North America, which accounted for more than half of overall car sales.

But sales dropped in the Middle East, Africa and Asia/Pacific regions, notably including key growth area China, where GM cited "challenging industry conditions" in a market that has seen heavy competition and price cuts.

GM said it was on track for a "breakout" year in 2023 for electric vehicles in which the no-emission autos transition from a minor component of sales into a meaningful contributor.

The Detroit-based automaker will produce 400,000 EVs over the course of 2022, 2023 and the first half of 2024.

GM lifted its full-year forecast for earnings before income taxes and one-time items. It also raised its outlook for cashflow-oriented figures that are also closely monitored by Wall Street.

However, the company now sees net income of $8.4 billion to $9.9 billion, down from the earlier range of $8.7 billion to $10.1 billion, due to $900 million in costs tied to a voluntary downsizing program among salaried workers.

Shares rose 3.2 percent to $35.38 in pre-market trading.

O.Bulka--BTB