GM Shares Drop 7.8% Despite Pre-Tax Profit

General Motors Co.’s pickup trucks are hauling in cash through the global semiconductor shortage and a resurgent pandemic, but investors on Wednesday signaled they want more from Chief Executive Mary Barra. Shares in the No. 1 US automaker fell 7.8%.

Photo Insert: GM Chief Executive Mary Barra speaking at a company launch

The harsh reaction to GM's numbers and strong results earlier Wednesday from Toyota Motor Corp. and Honda Motor Co. - underscores the uncertainty facing global automakers in a time of technological and economic disruption, Ben Klayman and Paul Lienert reported for Reuters.

Barra, in a call on Wednesday, said GM will "continue to see the impact this year" of the chip shortage, and expects it will continue into the new year. But she said trucks, SUVs, and crossovers will help buttress results in the second half and beyond, adding,

"We're going to see a strong pricing environment continue throughout the rest of the year and into 2022."

GM reported a second-quarter net income of $2.8 billion, or $1.90 a share, compared with a loss in the year-earlier quarter of $806 million, or 56 cents a share.

The latest results included an $800 million cost for a second recall of Chevrolet Bolt electric cars. Excluding items, GM earned $1.97 a share. But analysts were expecting $2.23 a share, according to IBES data from Refinitiv.

And analysts said GM's full-year profit guidance was conservative. GM raised its full-year forecast for pre-tax profits to $11.5 billion-$13.5 billion, from the previous $10 billion to $11 billion.

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