by Joseph White and Paul Lienert
DETROIT (Reuters) – General Motors raised its full-year profit and cash flow forecast on Tuesday, citing stronger-than-expected demand and higher prices, even as pretax profit fell in first trimester.
The automaker said it expects annual pre-tax profit of between $11 billion and $13 billion (€9.98 billion to €11.8 billion), up $500 million from the previous forecast .
The GM stock gained 3.2% in pre-market trading on Tuesday.
Annual cash flow from the automotive business is expected to be between $5.5 billion and $7.5 billion, the group said, up $500 million at both ends of the forecast range.
For the first quarter of 2023, GM reported adjusted pretax profit of $3.8 billion, down from $4 billion a year earlier, on revenue of $40 billion, up from $36 billion a year ago. one year old.
A weaker performance from GM’s finance division and an increased loss for the robotaxis Cruise business offset a jump in profit from the automaker’s North American operations.
First-quarter results, however, beat the company’s internal forecast, chief financial officer Paul Jacobson said.
Savings from the $2 billion cost-cutting plan by the end of 2024 “ripple through the bottom line faster than we anticipated,” he said.
GM also reaffirmed its goal of building 400,000 electric vehicles in North America between 2022 and the first half of 2024.
(Report Paul Lienert and Joseph White, Augustin Turpin, edited by Blandine Hénault)
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