GM reports Q2 profit growth, raises full-year forecast

DETROIT, July 25 (Reuters) – General Motors raised its full-year earnings guidance on Tuesday, mainly as the company plans to invest less in new products and cut operating costs by another $1 billion before the end of next year.

GM’s second-quarter net income rose nearly 52% to $2.6 billion, while revenue rose 25% from the same period a year earlier, when production was hampered by a semiconductor shortage.

The Detroit automaker said it now expects full-year net revenue to be between $9.3 billion and $10.7 billion, down from a previous forecast of $8.4 billion to $9.9 billion. EPS is projected to be $7.15-8.15 for the fiscal year, down from previous estimates of $6.35-7.35.

GM lowered its full-year capital expenditure forecast to $11-12 billion, down from an earlier forecast of $11-13 billion. The company’s chief financial officer, Paul Jacobson, did not name specific projects that would be cut.

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