GM profit surges to $2.98B on sales of higher-margin trucks

[Omaha Steve]

Source: AP

By TOM KRISHER

Detroit (AP) — General Motors’ first-quarter net income surged to $2.98 billion as strong U.S. consumer demand and higher prices offset production cuts brought on by a global shortage of computer chips.

Despite the semiconductor shortage, GM stuck with full-year pretax earnings guidance of $10 billion to $11 billion issued earlier in the year and said earnings would be at the high end of the range. Full-year net income is expected to be between $6.8 billion and $7.6 billion. The company predicts a strong first half with a pretax profit of around $5.5 billion.

CEO Mary Barra wouldn’t say how much production she expects to lose to the chip shortage. But she said purchasing, manufacturing, engineering and sales teams are working to divert the chips from cars and smaller SUVs to full-size pickup trucks, big SUVs and new electric vehicles.

“A lot of really good work is being done across our company to source semiconductors, allocate them across them our most in-demand and (factory) capacity-constrained products,” she said.



Read more: https://apnews.com/article/technology-health-coronavirus-pandemic-business-cfa12917ef9fd92e0ea8dd607b4e18f4

[essaynnc]

1. A friend wants to know.....

Will they be paying any taxes on that amount of profit? I'm not sure that they can afford it!!!!!! Lol.

[OneCrazyDiamond]

2. I think it depends on past losses being carried over.

Lots of corporations use that trick. I wouldn't be surprised if GM has a little left to offset with.

[EX500rider]

4. "Lots of corporations use that trick."

By trick I assume you mean following the tax laws as written?

[OneCrazyDiamond]

5. Yep.

That's how I understand the law, though I confess, I have never really used anything like that. I just read that is why they end up paying 0$.

[Martin68]

3. Now we know where those incentive payments went...