DETROIT — General Motors is raising its 2023 guidance for a second time this year after the automaker reported second-quarter results Tuesday that were up sharply year over year.
The Detroit automaker also said it is increasing cost-cutting measures through next year and now plans to cut $3 billion in expenditures compared with previous guidance of $2 billion.
GM CFO Paul Jacobson said the reductions will include sales and marketing spending, salary employment and other costs.
Here’s what GM reported for its second quarter, compared with what Wall Street expected based on average estimates compiled by Refinitiv:
- Adjusted earnings per share: $1.91
- Revenue: $44.75 billion vs. $42.64 billion expected
It was not immediately clear whether reported EPS was comparable to the $1.85 that was expected, according to Refinitiv consensus estimates.
The earnings included a $792 million charge for new commercial agreements between GM and LG Electronics and LG Energy Solution. The cost is a result of the automaker sharing costs with the companies for a recall of its Chevrolet Bolt EV models in recent years, which were previously expected to be paid by the LG companies.
Shares of GM are up roughly 17% this year. They closed Monday at $39.30 per share — off from a 52-week high of $43.63 per share, notched in February.
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