GM CFO ‘increasingly confident’ company will hit 2021 earnings targets

Standard Motors workers perform on the assembly line at the Fairfax Assembly & Stamping Plant in Kansas Town, Kansas.

Jim Barcus for Common Motors

General Motors CFO Paul Jacobson is “significantly confident” the automaker will hit its earnings targets for the year irrespective of a world wide lack of semiconductor chips that is pressured several plant closures.

“This is a really unstable situation and it modifications a great deal. I continue to come to feel relaxed that the comprehensive year, we are going to be in a position to provide the quantities we explained we ended up due to the fact we are thinking creatively,” he said Wednesday during a Financial institution of The us conference.

GM experienced a “seriously strong” 1st quarter, led by sturdy shopper need, in accordance to Jacobson. He warned buyers “it’s going to be choppy for the initial 50 percent of the 12 months, particularly as it relates to absolutely free dollars move.”

GM’s earnings forecast for the calendar year is $10 billion to $11 billion, or $4.50 to $5.25 for each share, in altered pretax profits and adjusted automotive free income stream of $1 billion to $2 billion. The forecasts issue in the potential effects of the chip shortage, which include a hit of $1.5 billion to $2.5 billion to its free of charge cash stream.