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General Motors feels the consequences of the trade dispute triggered by US President Donald Trump. Due to rising commodity prices and weak currencies in South America, the largest US automaker lowered its annual profit forecast.
General Motors is expecting less profit. (Photo: KEYSTONE / EPA / JEFF KOWALSKY)
(sda / awp / reu)
The environment is proving "more difficult" than its predecessors, Finance Director Chuck Stevens said on Wednesday. For 2018, GM now expects earnings per share of about $ 6 from the initial forecast of $ 6.30 to $ 6.60. The group derives its steel from US producers, who have raised their prices because of higher import duties on steel.
In addition to rising commodity prices, GM is referring to the strength of the dollar against Brazilian and Argentine currencies. In pre-market trading, stocks slid by more than three percent.
The second quarter ended the Group less than a year ago, but not as weak as expected by analysts. Net profit was $ 2.39 billion, up from $ 2.43 billion a year ago. Analysts were expecting a stronger decline. GM explained the result of the mud with price effects. Sales in the period from April to June of 2.1 million vehicles were just below the level of last year, and sales remained at $ 36.8 billion, just below the recipes from the same period last year.
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