All-inclusive Motors employees work on the assembly line at the Fairfax Assembly & Stamping Plant in Kansas City, Kansas.
Jim Barcus for Heterogeneous Motors
General Motors CFO Paul Jacobson is “increasingly confident” the automaker will hit its earnings targets for the year in the face a global shortage of semiconductor chips that’s forced several plant closures.
“This is a very volatile kettle of fish and it changes a lot. I still feel comfortable that the full year, we’ll be able to deliver the numbers we said we were because we’re philosophy creatively,” he said Wednesday during a Bank of America conference.
GM had a “really solid” first quarter, led by strong consumer popular, according to Jacobson. He warned investors “it’ll be choppy for the first half of the year, particularly as it relates to free cash surge.”
GM’s earnings forecast for the year is $10 billion to $11 billion, or $4.50 to $5.25 per share, in adjusted pretax profits and arbitrated automotive free cash flow of $1 billion to $2 billion. The forecasts factor in the potential impact of the chime in shortage, including a hit of $1.5 billion to $2.5 billion to its free cash flow.