GM defeated analysts’ estimates for its fourth-quarter earnings and expected strong earnings growth to continue this year, despite the short-term damage from the semiconductor shortage plaguing the auto industry.

General Motors reported adjusted earnings of $ 1.93 per share in the fourth quarter, compared with analysts’ consensus of $ 1.56 thanks to strong demand for pickups and large sports vehicles.

The strong business results ended a turbulent year for the company, which managed to withstand during the closures of the Covid-19 epidemic and took a bold step to end the production of gasoline-powered cars, and indicative forecasts for 2021 showed that profits will grow despite some remaining obstacles during the year.

For 2021, GM expects adjusted earnings before interest and taxes of $ 10 to $ 11 billion, which translates into adjusted earnings per share of $ 4.50 to $ 5.25, compared to $ 4.90 per share in 2020 and $ 8.4 billion in adjusted earnings before income. And taxes during the year.

The company estimates that the semiconductor shortage will wipe out $ 1.5 to $ 2 billion in pre-interest and tax-adjusted earnings this year. General Motors has already shut down three plants until mid-March and has had to build some vehicles without specific units in other factories and keep them until more come. The chips, but made it clear that it was a temporary obstacle.

In North America, the company reported a pre-interest and tax rate of quarterly income of $ 2.6 billion and a margin of 8.7% after fully operationalizing its truck and SUV plants.

GM plans to spend $ 9 to $ 10 billion on programs such as developing electric and autonomous cars this year, outpacing its main competitor Ford Motor’s capital spending budget of $ 6.5 billion in 2021.