General Motors reaffirmed its full-year profit outlook on an expected surge in demand and said it was curbing spending and hiring ahead of a potential economic slowdown, but a 40% drop in its quarterly net income disappointed, sending shares lower in premarket trading.
General Motors Co
The Detroit automaker's net income fell 40% in the second quarter from a year earlier due to supply-chain snarls, including asaid the company was"already taking proactive steps to manage costs and cash flows" ahead of a possible slowdown in the economy. The company, a bellwether for U.S. manufacturing and global automaking, has taken steps to offset a surge in inflation and other challenges, Chief Financial Officer Paul Jacobson said.
The automaker reaffirmed its forecast of full-year net income of $9.6 billion to $11.2 billion, and adjusted earnings before interest and taxes of $13 billion to $15 billion, while expecting global deliveries to be up sharply in the second half of the year.
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