GM Beats Expectations Despite $1.1B Tariff Hit in Q2
General Motors (GM) has reported a challenging second quarter, with a significant $1.1 billion tariff-related hit. Despite this, the company still managed to beat analyst expectations, driven by robust sales of gasoline trucks and SUVs.
GM's revenue dipped nearly 2% to around $47 billion, while adjusted earnings per share decreased to $2.53. The company's adjusted earnings before interest and taxes (EBIT) fell by 32% to $3 billion, largely due to the tariff impact. CEO Mary Barra acknowledged the tariff effect but reiterated the company's commitment to a profitable future in electric vehicle production.
GM has announced a $4 billion investment in three US facilities to bolster combustion-engine operations. However, the company may need to cut investment or find other ways to trim spending to offset the effect of tariffs. GM expects the tariff impact to worsen in the third quarter and could reach $4 billion to $5 billion for the full year.
In contrast, GM swung back to a small profit in China after losing money there a year earlier. The company's US sales rose 7%, and it maintained strong pricing on its popular pickup trucks and SUVs.
GM's second-quarter results highlight the challenges posed by tariffs, with a significant impact on earnings. Despite these headwinds, the company managed to exceed expectations, thanks to strong sales of gasoline trucks and SUVs. GM is investing in its combustion-engine operations while looking towards a profitable future in electric vehicles.
Read also:
- State Supreme Court Rules in Favor of Hogg Hummock Residents, Referendum on Zoning Change to Proceed
- chaos unveiled on Clowning Street: week 63's antics from 'Two-Tier Keir' and his chaotic Labour Circus
- Budget discrepancy jeopardizes highway projects' financial support
- Racing ahead in Renewable Energy Dominance: Changzhou, Jiangsu Pushes for Worldwide Renewable Energy Ascendancy
