DETROIT (Reuters) – General Motors Co expects full year adjusted pre-tax profits will reach about $14 billion, higher than the previous forecast, the automaker’s Chief Financial Officer Paul Jacobson said during a presentation.
GM had previously forecast full-year adjusted pre-tax profits at $11.5 billion to $13.5 billion.
Jacobson said GM’s financial performance is benefiting from strong consumer demand, high prices for new vehicles and more stability in supplies of semiconductors.
Jacobson cautioned that supplies of semiconductors, and GM’s vehicle production, won’t get back to normal until late 2022. GM’s inventories of vehicles at dealerships won’t get back to normal soon.
GM is also wrestling with rising costs for commodities used in its vehicles.
“We see inflation everywhere,” Jacobson said.
So far, Jacobson said the company is not seeing much impact from the new Omicron coronavirus variant.
“We are continuing with the protocols that we have put in place, that have worked,” Jacobson said.
(Reporting By Joe White; Editing by Nick Zieminski)