Vehicles were scarce due to a global shortage of computer chips, but that drove prices up and helped General Motors increase its net income 56% last year.
The Detroit automaker said Tuesday that it made $10.02 billion for the full year. And it predicted record pretax earnings in 2022 of $13 billion to $15 billion and net income of $9.4 billion to $10.8 billion.
Excluding one-time items, GM made $7.07 per share for the year, beating analyst estimates of $6.83, according to FactSet. Full year revenue of $127 billion fell short of estimates of $128.7 billion.
In the fourth quarter, GM made a $1.7 billion net profit.
GM’s sales in the U.S., its most profitable market, fell 13% for the year, and it was unseated by Toyota as the nation’s top-selling automaker for the first time. The company lost almost 3 percentage points of market share, which fell to 14.6%
But GM’s average vehicle sales price rose almost 20% in the fourth quarter from a year ago to nearly $54,000 as it sold more loaded-out trucks and SUVs, according to Edmunds.com.
Nearly all automakers have been forced to cut production due to the global semiconductor shortage, leaving few new vehicles on dealer lots.
Despite the profit, GM shares fell slightly in after-hours trading on Tuesday to $53.93.
“GM brands had a harder time keeping customers in the fold with less vehicles and options available,” said Jessica Caldwell, Edmunds.com’s executive director of insights. But she said inventory levels are looking better than they did in the third quarter, and vehicles are selling at higher average prices than GM’s Detroit competitors.
In North America, GM made $10.3 billion pretax for the year. That translates to as much as $10,250 in annual profit-sharing for the company’s 42,500 eligible unionized factory workers, GM said. Workers will see the money on Feb. 25. Last year the payment was $9,000.
Ford, GM profits fall as sales drop due to chip shortage
© 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
Citation:
Record sales prices drive GM profit up 56% to $10B last year (2022, February 1)
retrieved 1 February 2022
from https://techxplore.com/news/2022-02-sales-prices-gm-profit-10b.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no
part may be reproduced without the written permission. The content is provided for information purposes only.
For all the latest Technology News Click Here
For the latest news and updates, follow us on Google News.
