By Dhirendra Tripathi
Investing – Shares of General Motors (NYSE:GM) rose more than 6% Thursday after saying it expects its first-half results will be significantly better than prior guidance and it is optimistic about the full year.
For the six months ending June 30, the company had guided for net income of around $3.5 billion.
For fiscal 2021, net income is seen coming between $6.8 billion and $7.6 billion, while diluted adjusted earnings per share is forecast at $4.50 to $5.25, as per the May 5 forecast.
The company reiterated its commitment made in May to return full-size pickup production to its Oshawa assembly plant in Canada by December.
“The new accelerated timeline and incremental volume are expected to make an impact in 2022, as production ramps up,” it said in a note.
The company’s optimism is a result of its efforts to prioritize semiconductor usage, its success engineering solutions that maximize the utilization of chips as well as the pull-ahead of some projected semiconductor deliveries into the second quarter.
GM is among the several carmakers affected by the shortage of semiconductors, which have seen a surge in demand during the pandemic since they also go into mobile devices, laptops and other consumer products.
Production at certain manufacturing facilities in North America, Asia and South America will continue to be affected by the global semiconductor shortage through June and July, the company said.
Phil Kienle, GM's vice president for North America Manufacturing and Labor Relations, said customer demand continues to be very strong.