GM issues earnings warning citing supply chain disruptions, stock halted for news

General Motors Co.
GM,
-5.05%
warned Friday of a second-quarter earnings shortfall, as vehicle wholesale volumes were hurt by the timing of semiconductor shipments and other supply chain disruptions. The automaker’s stock was down 0.3% prior to a trading halt for news. The company expects net income for the quarter to June 30 to be between $1.6 billion and $1.9 billion, well below the FactSet consensus of $2.46 billion. The company affirmed its full-year outlook, however, as the supply disruptions are expected to be temporary. “[W]e had a total of approximately 95 thousand vehicles in our inventory that were manufactured without certain components as of June 30, 2022, a majority of which were built in June,” the company said in a statement. “We expect that substantially all of these vehicles will be completed and sold to dealers before the end of 2022.” GM still expects 2022 net income of $9.6 billion to $11.2 billion, which surrounds the FactSet consensus of $10.24 billion. The stock has tumbled 45.8% year to date through Thursday, while shares of rival Ford Motor Co.
F,
-3.39%
have dropped 46.4% and the S&P 500
SPX,
-0.88%
has slumped 20.6%.