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GM records impressive earnings

Auto maker posts 37% jump in quarterly profit!

While warning battery-production challenges could slow electric-vehicle rollout.

GM’s quarterly result showed that its traditional business has performed well despite higher borrowing costs and recessionary worries.

Tweet on GM earning report by Reuters

News on earning quarterly jumps by GM

GM on Tuesday revised its forecast for EV sales in North America through 2023, following an upbeat third-quarter earnings report in which the auto maker posted a 37% jump in net income, handily beating analysts’ expectations.

A big increase in deliveries of pricey pickup trucks and SUVs drove the results, and executives expressed confidence that demand remains strong through mounting economic challenges.

Still, the tamped-down outlook for EV sales comes as GM tries to show investors that it can emerge as a contender in the growing electric-vehicle market.

GM’s quarterly results showed that its traditional business has performed well so far despite the higher borrowing costs and recessionary worries that historically hurt car sales.

GM reported a $3.3 billion profit, driven by outsize sales of big pickup trucks and SUVs, the company’s biggest moneymakers. Revenue jumped 56% to a quarterly record $41.9 billion, as the auto maker worked through a backlog of vehicles that it hadn’t been able to ship the prior quarter because of parts shortages.

GM reaffirmed its full-year profit outlook of $13 billion to $15 billion in adjusted pretax profit. Third-quarter net pretax profit of $4.3 billion amounted to $2.25 per share, beating the average estimate of $1.88 according to analysts polled by FactSet.

*GM shares rose about 3% in early trading Tuesday.

Source: GM/Reuters
Image: GM