GM CFO “increasingly confident” of achieving profit targets for 2021 despite chip shortages

General Motors employees work on the assembly line at the Fairfax Assembly & Stamping Plant in Kansas City, Kansas.

Jim Barcus for General Motors

General Motors CFO Paul Jacobson is “increasingly confident” that the automaker will meet its profit targets for the year despite a global semiconductor die shortage that has forced several plant closings.

“This is a very volatile situation that is changing a lot. I’m still sure that all year round we can deliver the numbers that we said we are because we think creatively,” he said on Wednesday during a Bank of America conference.

According to Jacobson, GM had a “really solid” first quarter, led by strong consumer demand. He warned investors that “the first half of the year will be choppy, particularly with regard to free cash flow.”

GM’s earnings forecast for the year is $ 10-11 billion, or $ 4.50-5.25 per share with adjusted pre-tax earnings and adjusted automotive free cash flow of $ 1-2 billion. The projections take into account the potential impact of chip scarcity, including a $ 1.5 billion to $ 2.5 billion impact on free cash flow.

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