dChan
Anonymous ID: 768470 Oct. 24, 2023, 6:31 a.m. No.19792848   🗄️.is 🔗kun   >>3206 >>3448 >>3516 >>3605

GM withdraws 2023 guidance as UAW strike costs soar

 

(Additional comments and edited for spinage)

 

(This is complete rubbish….have you seen new car sales lately? All mfgs were going to have to cut production no matter wut however the fuggen UAW delivered an instant excuse on a golden diamond encrusted platter for them to blame it on)

 

General Motors (GM.N) on Tuesday withdrew its previous guidance for 2023 profits and near-term electric vehicle production as costs related to the United Auto Workers strikes jumped to $200 million a week during October.

GM's third-quarter net income fell 7.3% to $3.06 billion, while revenue rose 5.4% to $44.1 billion. The adjusted earnings per share tracked by analysts were $2.28, ahead of Wall Street expectations,and up from $2.25 a year ago because of the effect of share buybacks.

 

GM shares were up 1.6% in premarket trading after the stronger-than-expected profit.

The rising toll of the UAW strikes, the outlook for higher labor costs once a new contract is reached, rising warranty expenses and an uncertain macro-economic outlook have forced GM to abandon previous targets for full-year financial performance that it had lifted in July. Well Fargo analyst Colin Langan said the strike impact was not surprising. The UAW walkouts cost the company $200 million during the third quarter and $600 million so far in the fourth quarter, GM Chief Financial Officer Paul Jacobson said in a briefing with reporters.

Strike costs are now running at $200 million a week, Jacobson said. He would not discuss the potential impact should UAW President Shawn Fain order new walkouts at GM's most profitable North American factories such as the Arlington, Texas, plant that builds Cadillac Escalades and Chevrolet Suburbans, or the Flint, Michigan, heavy duty pickup assembly plant.

 

As the pace of EV sales growth has slowed in North America and even industry leader Tesla (TSLA.O) is expressing caution over the pace of its expansion, GM is shifting its EV strategy in the region.

The Detroit automaker said its EV strategy going forward will be to match "supply with demand to maintain strong pricing while taking immediate steps to enhance the profitability of our EV portfolio."

GM is abandoning a goal of building 400,000 EVs from 2022 through mid-2024, Jacobson said.

 

Overall, GM said profits for the quarter were pulled down by $1.5 billion because of higher costs and the impact of selling more EVs, the company said. Unlike rival Ford, GM does not break out losses from its EV operations. Jacobson said GM executives are concerned about rising interest rates as well as the conflict in the Middle East and whether that could impact consumer behavior. But he did not echo Tesla CEO Elon Musk's pessimism about the impact of rising interest rates on consumer demand.(lost track of how many price cuts Tesla-and if you bought one earlier this year you weren’t reading the ‘tea leaves’-has had but at least he is honest about that)

 

https://www.reuters.com/business/autos-transportation/gm-withdraws-2023-guidance-uaw-strike-costs-soar-2023-10-24/

Anonymous ID: 768470 Oct. 24, 2023, 7:50 a.m. No.19793196   🗄️.is 🔗kun

US PMIs Print Goldilocks Surprise In October: Growth Expansion & Slowing Inflation

 

Despite a plunge in 'hard' data in recent weeks, S&P Global 'soft' survey data shows 'expansion' for US Manufacturing and Services (both of which were expected to decline):

  • Manufacturing PMI: Oct Flash 50.0 (49.8 prior, 49.5 exp)

  • Services PMI: Oct Flash 50.9 (50.1 prior, 49.9 exp)

 

The US 'beat' comes as Europe's PMIs were a shitshow.

The Euro area composite flash PMI decreased by 0.6pt to 46.5, below consensus expectations, driven by a decline in the services sector. Across countries, the weakness in the area-wide index was driven by a deceleration in Germany and the periphery, partially offset by an improvement in France. In the UK, the composite flash PMI improved marginally to 48.6, slightly above consensus expectations, on the back of a pickup in manufacturing activity. We see three main takeaways from today's data.

 

  • First, we see persistent weakness in the Euro area, driven by renewed decline in the services sector, which saw only a brief trend reversal in September. Country press releases attributed lower output volumes to weak demand, client hesitancy and tighter financial conditions.

  • Second, inflationary pressures continue to moderate in the Euro area, as reflected by the continued decline in output prices, with input prices showing signs of renewed cooling, after a tick-up in September.

  • Third, while marginally better than last month, the UK growth momentum remains subdued across both sectors. This, in turn, is now being accompanied by an increase in output prices, despite continued cooling in input price pressures.

The US is now the only region not in contraction…(according to fake constantly revised data up or down depending on what it is and how it portrays “all good”)

 

https://www.zerohedge.com/markets/us-pmis-print-goldilocks-surprise-october-growth-expansion-slowing-inflation