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The prices could eat billions of the end lines of car manufacturers.
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General Motors posted a solid first trimester, going beyond estimates.
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But he suspended other share buybacks and made advice.
All eyes and ears are on car manufacturers“The gains call to try to recover advice or details on how companies will try to mitigate the prices. The Trump administration has implemented prices which included a 25% levy from imported vehicles, and which extends to automobile parts imported in May – although there appears that there are changes to the prices.
With this staging, here are three important take -out dishes of General Motors‘ (NYSE: GM) Impressive first trimester.
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Investors knew that General Motors had a solid quarter after seeing his report on sales, and his financial results did not disappoint. General Motors said $ 2.78 in profit by actionAt the top of analysts estimates, providing $ 2.70. Revenues increased to $ 44.02 billion, also exceeding analysts’ estimates requiring turnover of $ 42.85 billion.
The bad news is that prices should cause immense pain. According to BarronAnalysts provide the impact of prices on GM’s profits beach between 30% and 100% of operating income – this is a serious matter.
Management wishes to have a crystal ball to help predict pricing impacts, but with a lack of certainty on the subject, General Motors has chosen to draw their previous guidelines.
“We believe that the future impacts of the prices could be important, so we re -evaluate our advice and we are impatient to share more when we have greater clarity,” said MP financial director Paul Jacobson during a media call. “The previous advice cannot be invoked, and we will come back to the market with clarity as soon as we have it.”
The good news is that even if the potential impacts could be devastating, The Wall Street Journal said the Trump administration on Monday should soften the impact of car rates. The automotive industry could certainly use relief, because their supply chains are globalized, complex and take immense time and efforts to change so radically to avoid prices.
In equally positive news, Jacobson also said that the car manufacturer thought it can compensate between 30% and 50% of North American prices.
One thing that General Motors has done extraordinarily well in recent years is to buy its undervalued actions at a high rate. At the end of 2023, the company announced a bought acquisition of $ 10 billion and, earlier this year, it announced an additional authorization of $ 6 billion. In fact, GM has considerably reduced its actions in circulation in the last decade, and its stock market course, as you can see, reacted positively.
