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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