- GM’s revenue falls nearly 2% to $47 billion
- Shares fall about 3% in premarket trade
- GM maintains tariff impact of $4 billion to $5 billion for the year
- Automakers shift focus to gas vehicles as EV demand slows, tax credits end
July 22 (Reuters) – General Motors’ (GM.N), opens new tab second-quarter core profit fell 32% to $3 billion on Tuesday, as the automaker continued to confront challenging tariff policies, which it said sapped $1.1 billion from the results.
The largest U.S. automaker by sales said it expects the tariff impact to worsen in the third quarter and stuck to a previous estimate that trade headwinds threaten to hit the bottom line by $4 billion to $5 billion. GM said it could take steps to mitigate at least 30% of that impact.
The automaker’s revenue in the quarter ended June 30 fell nearly 2% to about $47 billion from a year ago. Its quarterly adjusted earnings per share fell to $2.53 compared with $3.06 a year earlier. Analysts on average expected adjusted profit of $2.44 per share, according to data compiled by LSEG.
Shares fell about 3% in premarket trade.
GM was among corporations that revised annual guidance due to the impact from President Donald Trump’s tariffs, lowering it to an annual adjusted core profit of between $10 billion and $12.5 billion. The company on Tuesday stood by that forecast.
Beyond tariffs, GM’s underlying business in the quarter was solid. Sales in the U.S. market – its main profit center – rose 7%, while the company continued to command strong pricing on its pickup trucks and SUVs. GM swung back to a small profit in China, after losing money there a year earlier.