Lack of chips can make General Motors “evaporate” $ 2 billion profit
General Motors said fourth-quarter 2020 profits easily exceeded Wall Street forecasts, but a global shortage of chips could cost the group’s 2021 profit below $ 2 billion.
|General Motors logo at factory in Flint, Michigan, USA. (Photo: AFP / VNA)|
Since the end of 2020, many automakers and spare parts suppliers have begun to warn of a shortage of semiconductors due to increased and stronger auto demand. two months production plants were closed due to the Covid-19 pandemic.
In addition to production cuts in South Korea, GM has temporarily shut down car and crossover factories in Kansas State (Midwestern USA), Canada and Mexico until mid-March 2020 due to love. lack of semiconductors.
However, both GM’s return per share (EPS) and 2020 sales volume exceeded Wall Street analysts’ expectations. Data that Refinitiv synthesized shows, adjusted EPS year 2020 GM’s reached $ 1.93, higher than the average of $ 1.64 that analysts made earlier. And sales in 2020 of GM reached 37.5 billion USD, while the forecast is only 36.12 billion USD.
CNBC TV channel quoted John Stapleton, GM’s interim CFO with Wall Street analysts in November 2020 that the automaker estimated profit. before tax the adjustment will reach about 8.5-9 billion USD in the second half of 2020.
Previously, the American automaker announced adjusted pre-tax profit in the third quarter of 2020 to reach $ 5.3 billion, equivalent to an EPS of $ 2.83, and forecast that the fourth quarter’s results would decline due to the service.
And the fourth quarter of 2019 recorded GM only achieved 105 million USD Adjusted pre-tax profit due to 40-day labor strikes severely impacted the group’s production, while revenue in the same quarter reached $ 30.8 billion.