General Motors (GM) Q2 2020 profit

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On April 1, 2020, Mary Barra, CEO of General Motors, visits one of the company’s facilities in Warren, Michigan, which will produce Level 1 face masks.GM

General Motors lost about $ 800 million and burned billions of dollars in the second quarter in what is expected to be the three worst months of the year for the auto industry, as the coronavirus pandemic has closed factories and devastated sales.Here’s what GM reported versus what Wall Street expects, based on average analyst estimates compiled by Refinitive.

  • EPS: A loss of 50 cents per share vs. an expected loss of $ 1.77 per share.
  • Turnover: $ 16.8 billion against $ 17.3 billion expected.

The company spent about $ 8 billion on cash in the quarter, a figure analysts and investors are watching closely.

GM said it expected to spend between $ 7 billion and $ 9 billion in the second quarter.

The second quarter is expected to be “probably the most difficult in modern history” for the auto industry, according to John Murphy, Bank of America analyst Merrill Lynch, noting that companies “have faced a near-zero revenue environment. for a few months. ”

Other investors and industry executives called the second quarter “unprecedented” and possibly the three worst months of the year.

Among the Detroit automakers, GM was expected to be in the best position to weather a crisis as severe as the coronavirus pandemic. For years, the automaker has aggressively cut costs and pulled out of unprofitable markets, including Europe, to strengthen its balance sheet.

GM’s vehicle sales in the United States in the second quarter fell 34% from a year ago, the company said earlier this month. It was industry compliant.

GM last year reported second-quarter net profit of $ 2.4 billion on new revenue of $ 36.1 billion.

This story is developing. Please come back for updates.

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