GM’s shares surge as new full-size pickups boosts third-quarter earnings. General Motors Co. posted more than expected earnings and revenues that sent its shares climbing.
The Detroit carmaker sold vehicles at higher prices in the US and China during the third quarter. It revealed a profit of $2.5 billion, up from the last year quarter.
The company reported per share $1.87 per share earnings, up 41.7 percent from the same quarter last year. The revenue jumped 6.4 percent to $35.8bn. The analyst estimated $1.25 earnings and $34.85 billion revenue.
The automaker also said that it’s underlying earnings before interest and tax soared 25 percent to $3.2bn, with a profit margin of 8.8 percent.
“Our disciplined approach to the U.S. market, combined with strength in China and further growth of GM Financial, drove a very strong quarter,” said Dhivya Suryadevara, GM CFO. “We will continue to take actions to mitigate headwinds including foreign currency volatility and commodity costs.”
General Motors said that the strong sales of its new vehicle in North American earned about $2.8 billion up from about $2.1 billion up from a previous year in the same quarter, while in China it made $500 million equity income in the quarter.
The automaker reported that vehicle sales volume in third-quarter plunged by 14.7 percent across every region from the last year.
“Our third-quarter performance demonstrates our determination to manage risks and deliver strong business results while continuing to advance the future of mobility,” CEO of GM Mary Barra said in a statement Wednesday.