General Motors missed Wall Street earnings expectations for the second quarter on Tuesday despite a record operating profit. The annual forecast has also been raised.

Here’s how GM fared compared to Wall Street expectations based on Refinitiv’s average estimates.

  • Adjusted earnings per share: $ 1.97 vs. $ 2.23 expected
  • Revenue: $ 34.17 billion versus $ 30.9 billion expected

GM’s earnings in the second quarter were weighed down by approximately $ 1.3 billion in warranty recall costs, including $ 800 million related to the Chevrolet Bolt EV. The electric vehicle was recalled twice in the past year due to fire hazard, last last month.

The automaker raised its adjusted full-year forecast to $ 11.5 billion to $ 13.5 billion, or $ 5.40 to $ 6.40 per share, from $ 10 billion to $ 11 billion, or $ 4.50 Dollars to $ 5.25 per share.

GM’s stock declined about 4% to $ 55.70 per share during the pre-trading session.

On an unadjusted basis, net income for the second quarter was $ 2.8 billion, compared to a loss of $ 758 million last year when the coronavirus pandemic resulted in rolling closures of its factories. The automaker reported adjusted profit before tax of $ 4.1 billion for the second quarter, compared to a loss of $ 536 million a year earlier.

“Everyone has shown remarkable resilience and adaptability in this rapidly changing environment,” said GM chief Mary Barra on Wednesday during a phone call with reporters.

Adjusted earnings were a record for the second quarter, beating GM’s adjusted earnings before interest and taxes of $ 3.9 billion, or $ 1.86 per share, in 2016.

GM has overcome the challenges of a global semiconductor die shortage that has resulted in factory closures and is expected to save the industry billions in revenue in 2021.

GM confirmed Tuesday that its three North American full-size pickup truck assembly plants will be closed next week due to the shortage.

The automaker previously said it expected the chip shortage to reduce its profits by $ 1.5 billion to $ 2 billion. GM CFO Paul Jacobson declined to update these expectations on Wednesday, citing changing circumstances and better-than-expected profits that will help offset those effects.

“The chips really represent a bit more of a missed opportunity, which could have been better, but the year is actually progressing quite well and I think we exceeded all of those initial expectations to exceed our expectations.” Do it earlier this year, “Jacobson told reporters when he called.

In June, GM forecast better-than-expected results for the second quarter despite the industry-wide impact of scarcity, which is also leading to record vehicle prices and profits.

The company said that due to continued strong demand, better-than-expected results at GM Financial, and improved short-term manufacturing, it expects adjusted EBIT for the first half to be between $ 8.5 billion and $ 9.5 billion will lie. That was more than a forecast of $ 5.5 billion earlier this year.