Investing.com -- General Motors (NYSE:GM) has lifted its annual profit forecast after the U.S. carmaker was boosted by strength in its core auto business in the second quarter.
The company said it now expects to report net income attributable to shareholders of $9.3 billion to $10.7 billion, up from its prior guidance of $8.4B to $9.9B.
Revenue during the three months ended on June 30 jumped by 25% year-on-year to $44.75B, topping estimates of $41.92B, driven by market share gains in the U.S. and elevated prices.
Supply chain constraints, which had weighed on returns in recent quarters, also continued to ease, supporting volumes.
The group added that a recovery in its joint venture operations in China following the end of COVID-era restrictions helped lift deliveries in North America. Earlier this month, GM reported an 18.8% uptick in U.S. deliveries to 691,978, its highest level since 2020.
But GM flagged that it booked a $792 million charge linked to new commercial agreements with LG Electronics (KS:066570) and LG Energy Solution (KS:373220). It noted that it is also "taking new steps to reduce costs and improve electric vehicle margins over time."
Quarterly net profit rose to just under $2.6B, an increase of more than 51%.
Shares in GM rose in premarket trading on Tuesday.