GM raises the forecast, saying the chip shortage isn’t as bad as fear

GM raises the forecast, saying the chip shortage isn’t as bad as fear

General Motors says efforts to manage the shortage of computer chips have worked better than expected, so economic results will improve compared to previous forecasts.

The company said in a statement Thursday that it has made engineering changes, using priority semiconductors and making some potential deliveries in the second quarter. So earnings in the first half will be significantly better than forecasts for the year.

GM forecast a budget gain of about $ 5.5 billion in the first half of May when it made a profit in the first quarter of May. The company also said it is optimistic for the rest of the year, but did not provide further details.

In the first quarter, the company posted a net profit of $ 2.988 billion as strong consumer demand and high prices offset production cuts caused by chip shortages.

GM had previously projected a $ 10 billion profit for the full fiscal year and said the profits would be in the highest range. Net income for the full year is expected to be between $ 6.8 billion and $ 7.6 billion.

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