General Motors (GM) - Get Report shares jumped higher Thursday after the carmaker said it expects its first half earnings to be "significantly better" than previous forecasts as semiconductor shipments improve and plants around the country return to full capacity.
GM said it's accelerating the production of large and medium-sized pickups in the United States, following several plant shutdowns linked in part the global shortage in semiconductor supplies, but noted that some facilities will continue to be affected into the summer months.
Earlier this year, GM warned that chip shortages would cuts its 2021 earnings by as much as $2 billion and forecast adjusted earnings of between $4.50 and $5.25 a share.
"The global semiconductor shortage remains complex and very fluid, but the speed, agility and commitment of our team, including our dealers, has helped us find creative ways to satisfy customers," GM vice president Phil Kienle. "Customer demand continues to be very strong, and GM's engineering, supply chain and manufacturing teams have done a remarkable job maximizing production of high-demand and capacity-constrained vehicles."
General Motors shares were marked 2.5% higher in early trading Thursday to change hands at $61.15 each, a move that would extend the stock's year-to-date gain to around 47%.
GM has also been caught in the tailwind of the recent rally for its smaller rival, Ford (F) - Get Report, which looks to trade north of $15 for the first time in more than five years this week following an impressive investor day presentation that pledged $30 billion in electric vehicle investment and vowed that 40% of its fleet sales would be fully electric by 2030.