GM profit tops estimates, sees strong full year

GM profit tops estimates, sees strong full year

FILE PHOTO: The GM logo is seen at the General Motors Lansing Grand River Assembly Plant in Lansing, Michigan October 26, 2015. REUTERS/Rebecca Cook/File Photo
DETROIT: General Motors Co on Wednesday posted far stronger-than-expected quarterly profit and said its full-year earnings forecast would come in at the high end of its forecast due to strong demand in North America.GM shares jumped 7.6 percent in pre-market trading.
The Detroit automaker reported third-quarter net income of US$2.53 billion, or US$1.75 a share, compared with a loss last year of US$2.98 billion, or US$2.03 a share. Last year's quarter included a charge related to Europe.Excluding one-time items, GM earned US$1.87 a share in the third quarter, easily beating the US$1.25 analysts polled by Refinitiv estimates had expected.Revenue in the quarter rose 6.4 percent to US$35.8 billion, above the US$34.85 billion analysts had expected.GM was able to push through higher pricing, mostly in North America, allowing it to benefit by US$1 billion in the quarter, offsetting higher commodity costs.
Those pricing gains are sustainable, the company's CFO said."Our third-quarter performance demonstrates our determination to manage risks and deliver strong business results," GM Chief Executive Mary Barra said in a statement.The Detroit automaker said it still sees a full-year profit in the range of US$5.80 to US$6.20 a share, but said it now expected to finish at the high end of the range with potential to finish even higher. It cited a favorable tax rate and its strong performance.In July, GM lowered its full-year forecast, citing higher steel and aluminum costs due to tariffs imposed by U.S. President Donald Trump's administration.
(Reporting by Joe White and Ben Klayman in Detroit; Editing by Nick Zieminski)
Source: Reuters
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