NEW YORK: General Motors reported higher first-quarter profits and reaffirmed its full-year outlook Wednesday, despite a global shortage of semiconductors that has constrained auto manufacturing.
The automaker’s share price rallied after the report, which showed GM has been more resilient amid the upheaval caused by the chip crunch compared with some of its rivals.
The big US automaker reported profits of $3 billion, 10 times the level in the year-ago period, on strong vehicle pricing, even as revenues were essentially flat at $32.5 billion.
And the company said it is “highly confident” in its full-year financial outlook released in February given strong continued consumer demand for autos.
GM benefited from higher auto deliveries in the United States and China that more than offset declines in other markets.
Another bright spot was GM Financial, the company’s lending arm, which posted higher profits amid rising prices for used vehicles.
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