Mary Bara, president and CEO of General Motors, visits one of the company’s facilities in Warren, Michigan on April 1, 2020, which will produce Level 1 face masks.
General Motors lost nearly $ 800 million and burned through billions of dollars in the second quarter in hopes of having the worst three months of the year for the auto-industry as coronovirus epidemic factories and ravaged sales.
Here’s what GM reported on what Wall Street is expecting, based on an average analyst estimate compiled by Refinitive.
- EPS: A loss of $ 1.77 per share is expected to result in a loss of 50 cents per share.
- Revenue: $ 16.8 billion vs. $ 17.3 billion expected.
The company burned approximately $ 8 billion through cash during the quarter, a number that is watching analysts and investors closely.
GM said it expected to spend between $ 7 billion and $ 9 billion in the second quarter.
The second quarter is “likely to be the toughest in modern history” for the automotive industry, according to Bank of America Merrill Lynch analyst John Murphy, noting that companies have been near a zero-revenue environment for a few months. “
Other investors and industry officials have called the second quarter “unprecedented”, and are likely to have the worst three months of the year.
Among Detroit automakers, GM was expected to be best positioned for a crisis season in the form of a coronovirus epidemic. Over the years, the automaker has aggressively cut costs, including Europe, to bolster its balance sheet and exit unprofitable markets.
GM’s second-quarter US vehicle sales dropped 34% from a year earlier, the company said earlier this month. This was in line with the industry.
GM reported last year’s second quarter net income of $ 2.4 billion on new revenue of $ 36.1 billion.
This story is developing. Please check back for updates.