GM seeing commodity costs rise in trade war, cuts outlook
By ASSOCIATED PRESSGeneral Automotive auto Detroit EU Europe GM tariffs US
Automaker's take on the year ahead dragged down shares of the entire auto sector.
NEW YORK — General Motors, facing rising commodity costs in a trade showdown with Europe and elsewhere, cut its outlook for the year.
Shares tumbled more than 5% before the opening bell and GM’s take on the year ahead dragged down shares of the entire auto sector July 25.
The diminished expectations overshadowed a strong second quarter.
Quarterly profit rose 44% to $2.39 billion, or $1.66 per share. A year ago, the company had a loss on the sale of its European Opel unit.
Excluding charges, the Detroit company earned $1.81 per share, topping Wall Street expectations for $1.78, according to a poll by FactSet. Revenue was flat at $36.76 billion, falling short of Wall Street forecasts.
GM now expects 2018 per-share profits of $5.14, down from $6.