General Motors 3Q Earnings Beat Expectations, Shares Rise
General Motors reported much higher-than-expected third-quarter earnings on strong North American truck and SUV sales, blowing past fears that a U.S. market slowdown would dent profitability.
GM said on Tuesday that it expected full-year results would be on the "high end" of its previous forecasts of $5.50 to $6.00 a share. Rival Ford Motor Co in July warned that a slowing U.S. auto market would put its full-year profit forecast at risk.
GM's results and its outlook depend primarily on strong U.S. and Chinese economies. The company said it lost money in Europe, South America and in Asian markets outside of China.
The loss in Europe came to about $100 million in the third quarter. GM affirmed its forecast of break-even results from that market this year despite a projected $400 million hit during the second half of the year from the post-Brexit decline of the British pound.
Still, Chief Financial Officer Chuck Stevens told reporters that meeting the forecast for Europe this year would be "very, very challenging."
GM shares were up 1 percent at $33.30 in premarket trading.
Overall, GM said third-quarter net income more than doubled to $2.8 billion, or $1.76 a share, from a year earlier.
Excluding a $110 million gain from litigation, earnings of $1.72 a share beat the analysts' average estimate of $1.45, according to Thomson Reuters I/B/E/S.
(Reporting by Bernie Woodall; Editing by Lisa Von Ahn)