General Motors lost more than 53% in revenue due to the pandemic

General Motors lost more than 53% in revenue due to the pandemic

GM hit hard by the pandemic

The pandemic wasn’t gentle to General Motors, as the figures released today showed.

The company’s revenue dropped by more than 53% during the past quarter to $16.78 billion, from last year’s $36.1 billion.

General Motors lost around $800 million, compared to last year’s profit of $2.42 billion.

After adjustment, the company lost 50 cents per share, below the analysts’ expectations of $1.77 per share. It also beat the analyst’s expectations on burned cash, as the company went through nearly $8 billion. The company was looking at a high of $9 billion.

Experts expect Q2 to be the worst of 2020 as the pandemic ravaged sales and shut down factories. By GM's report, the US vehicle sales dropped by 34%. Out of all the American carmakers, GM is expected to have the means of overcoming the effects of the pandemic, as they are known for their resilience and efficient cost-cutting processes.

In the expectance of the earnings report, the share price gained almost 4%.

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Sources: cnbc.com


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