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GM reports smaller-than-expected coronavirus hit in second quarter

GM reports smaller-than-expected coronavirus hit in second quarter

General Motors Co on Wednesday posted a smallerthanexpected loss for the second quarter, as pickup truck sales and aggressive costcutting helped mitigate the impact of a forced shutdown to slow the spread of the coronavirus which left its North American plants idled until May 18.

  • Reuters
  • Last Updated: July 29, 2020, 5:36 PM IST
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General Motors Co on Wednesday posted a smaller-than-expected loss for the second quarter, as pickup truck sales and aggressive cost-cutting helped mitigate the impact of a forced shutdown to slow the spread of the coronavirus which left its North American plants idled until May 18.

The better-than-expected results sent the No. 1 U.S.automaker’s shares up 3.8% in premarket trading.

“These results illustrate the resiliency and earnings power of the business as we make the critical investments necessary for our future,” Chief Financial Officer Dhivya Suryadevara said in a statement.

GM did not provide a earnings forecast for the year, but said it ended the second quarter with $30.6 billion in cash.

The company said it was “working all avenues” to boost U.S. dealer inventories and all of its U.S. full-size pickup truck and full-size SUV plants are back at three shifts.

Nearly all of its other plants are now working at pre-pandemic shift levels.

GM reported a net loss for the quarter of $806 million, or 56 cents per share, versus a profit of $2.4 billion or $1.66 per share a year earlier.

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Excluding one-time items, GM reported a loss of 50 cents per share while analysts had expected a loss of $1.77 per share.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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  • First Published: July 29, 2020, 5:36 PM IST
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