General Motors Co. (NYSE: GM) has announced its Q3 2021 earnings, including strong performance mix and price in North America, continued solid results from GM Financial, and the benefit of the recall cost recovery agreement with LG Electronics.
General Motors reported revenue of $26.779 billion in Q3
The company reported revenue of $26.77 billion, a drop from $35.48 billion a year ago. General Motors reported adjusted diluted earnings per share of $1.52 during the quarter compared to $2.83 a year before.
GM CEO and Chair Mary Barra told shareholders in a letter:
Our third-quarter 2021 results clearly illustrate the strength of the underlying business that is funding our future, especially when you put them in the context of the calendar year. In the third quarter, our EBIT-adjusted was $2.9 billion, with a 10.9-percent margin.
The quarter was challenging due to continuing semiconductor pressures. But it also includes very strong results from GM Financial, the recall cost settlement we reached with our valued and respected supplier and JV partner LG Electronics, and $0.3 billion in equity income from our joint ventures in China.
Owing to the exceptional performance during the quarter, the company has revised its full-year guidance and now expects diluted EPS between $5.52 and $6.52 and adjusted diluted EPS of between $5.70 and $6.70.
The CEO stated:
We now believe GM’s full-year results will approach the high end of our guidance, which is for EBIT-adjusted in the range of $11.5 billion to $13.5 billion, well above the $10 billion to $11 billion outlook we shared in February.
General Motors increasing efforts to produce EV
The company is committed to its goal of being a leader in the US EV sector. General Motors is targeting having its four battery cell plants in the US operational by mid-decade, which will double the overall scale and capacity of EV production. Additionally, the company is planning to manufacture EV motors and its first EV dedicated truck plant in the US. Barra said:
By the end of the decade, we envision that connected vehicles and other new businesses will drive more than $80 billion in new, incremental revenue. At the same time, revenue from EVs is expected to grow from about $10 billion in 2023 to $90 billion.