GM CFO ‘increasingly confident’ in achieving 2021 earnings targets despite chip shortage

Classic Motors workers work on the assembly line on the Fairfax Meeting & Stamping Plant in Kansas City, Kansas.

Jim Barcus for Classic Motors

Classic Motors CFO Paul Jacobson is “extra and further assured” the automaker will hit its earnings targets for the 300 and sixty five days despite a world shortage of semiconductor chips that is forced a total lot of plant closures.

“Right here’s a truly dangerous pronounce and it modifications loads. I restful feel at ease that the elephantine 300 and sixty five days, we’ll be in a position to bring the numbers we acknowledged we had been because we’re bearing in mind creatively,” he acknowledged Wednesday all the way thru a Bank of The USA conference.

GM had a “in actuality sturdy” first quarter, led by sturdy consumer demand, in step with Jacobson. He warned investors “it would be choppy for the first half of the 300 and sixty five days, seriously because it relates to free cash waft.”

GM’s earnings forecast for the 300 and sixty five days is $10 billion to $11 billion, or $4.50 to $5.25 per portion, in adjusted pretax profits and adjusted automotive free cash waft of $1 billion to $2 billion. The forecasts factor in the ability affect of the chip shortage, in conjunction with successful of $1.5 billion to $2.5 billion to its free cash waft.