General Motors (GM) reported a significant decline in second-quarter profits, citing the impact of U.S. tariffs imposed under President Trump. Despite some positive sales growth in key markets, tariffs took a heavy toll on the automaker’s bottom line.
Here’s a quick summary in bullet points:
- Profit Drop: GM’s second-quarter core profit fell 32% year-over-year to $3 billion.
- Tariff Impact: The company said tariffs shaved $1.1 billion off its Q2 earnings.
- Revenue Dip: Revenue dropped nearly 2% to $47 billion in Q2.
- Earnings Per Share: Adjusted EPS fell to $2.53 from $3.06 last year — still beating analyst expectations of $2.44.
- Stock Reaction: GM shares dropped 3% in premarket trading after the results.
- Outlook: GM expects tariff pressures to worsen in Q3, potentially reducing 2024 profits by $4–$5 billion, though it aims to mitigate 30% of that impact.
- Guidance Maintained: Despite uncertainty, GM stuck to its adjusted annual profit forecast of $10–$12.5 billion.
- Other Positives:
- U.S. sales (GM’s core market) rose 7%.
- Maintained strong pricing for pickups and SUVs.
- Returned to profitability in China after a loss last year.
- U.S. sales (GM’s core market) rose 7%.
Despite a solid underlying business, tariffs remain a major threat to GM’s earnings trajectory this year.