General Motors Lifts 2024 Profit Forecast After Strong Q1
Faizan Hashmi Published April 23, 2024 | 05:10 PM
New York, (UrduPoint / Pakistan Point News - 23rd Apr, 2024) General Motors reported higher profits Tuesday thanks to continued strength in North America that offset a loss in its China business, enabling the carmaker to lift its forecast.
GM, which has benefited from consistently strong demand from US consumers for pickup trucks and other larger vehicles, increased its range for 2024 net income by $300 million to between $10.1 and $11.5 billion.
"The team is executing well and making progress across the board," GM Chief Executive Mary Barra said in a letter to shareholders.
Net profits in the first quarter rose 24 percent to $3.0 billion on a 7.6 percent rise in revenues.
US auto deliveries were down slightly in terms of volume, but North American earnings climbed on "consistent" pricing and lower costs, the company said in a presentation.
"Our consumer has been remarkably resilient in this period of higher interest rates," Chief Financial Officer Paul Jacobson said in a conference call with reporters.
Jacobson said pricing was "essentially flat" compared with the prior quarter. The company still expects pricing power to erode slightly in 2024, although it has yet to see a decline surface in the market.
Vehicle inventories at GM dealers in the United States have risen to 534,000, well above the level seen in 2023. Inventories have been lower than industry targets in recent years due to Covid-19 outages and supply chain issues.
The current inventory translates into about 63 days of supply, which GM considers "pretty good" given that spring is a seasonally strong period for car sales, Jacobson said.
GM's strength in its home market helped offset an operating loss of about $100 million in GM's China operation.
"We expect things to normalize a little bit and turn back to profit," Jacobson said of China, pointing to upcoming vehicle launches.
Related Topics
Recent Stories
Pakistan marks World Press Freedom Day
High-level Saudi business delegation due on May 5
Stocks heat up as US labour market cools
President approves Tax Laws (Amendment) Bill 2024
Implementation of merit, justice to oppressed segments top priorities: CPO
Overseas Kashmir community delegation calls on AJK President, discusses latest s ..
Govt believes in freedom of press: Amir Muqam
Labour urges UK election after Tory losses
Health authorities asked for action against alleged illegal tenders at Services ..
Spain scraps national bullfighting prize sparking debate
Lahore High Court (LHC) Chief Justice Malik Shahzad Ahmad Khan visits Rawalpindi ..
ATC extends interim bail of PTI founder in 3 cases
More Stories From Business
-
CCP approves scheme of arrangement for restructuring of PIACL
9 hours ago -
High-level Saudi business delegation due on May 5
11 hours ago -
Stocks heat up as US labour market cools
11 hours ago -
Planning minister stresses need for establishing digital corridor
11 hours ago -
Burj Solar install Pakistan´s first distributed generation Wind Power project
11 hours ago -
TEVTA’s BoD decides capacity building, adoption of frugality
12 hours ago
-
US hiring slows more than expected in sign of cooler market
12 hours ago -
Stocks heat up as US labour market cools
13 hours ago -
Stocks heat up as US labour market cools
13 hours ago -
US hiring slows more than expected in sign of cooler market
14 hours ago -
PSX turns bullish, gains 1,244 points
14 hours ago -
Finance Minister for measures to enhance tax to GDP ratio
16 hours ago