General Motors beat Wall Street earnings expectations as vehicle sales began to rebound from persistent supply chain troubles.
The automaker posted a net income of $3.3 billion, or $2.25 per share, for the third quarter of 2022, compared to $2.42 billion a year earlier. Net income for the quarter was driven by a new vehicle sales increase of 24% in the United States.
Meanwhile, GM reported $41.9 billion in revenue, up from $26.8 billion a year ago but slightly below analysts' expectation of $42.2 billion.
Chief Financial Officer Paul Jacobson said the company is not seeing any sign that demand for new vehicles is slowing despite higher interest rates and inflation.
"Pricing remains strong, demand remains strong for our products," he told reporters early Tuesday.
GM finished and shipped about 75% of the 95,000 vehicles manufactured without certain components as of June 30. Jacobson said the company is seeing better supplies of computer chips and other parts. Dealer inventory as of Sept. 30 rose to 359 million, up from 248 million in the second quarter.
"Overall chips are getting better than certainly where they were a year ago," he said.
The company has not seen any signs of a recession, but it is continuing to watch the economy, Jacobson said. It has no plans to cut any workers, but is being selective in hiring, he said.
GM CEO Mary Barra said the company would maintain full-year guidance due to strong demand for its products and success in actively managing its headwinds despite a challenging environment.
For full-year 2022, GM is forecasting net income between $9.6 billion and $11.2 billion, adjusted earnings before interest and taxes between $13 billion and $15 billion and adjusted earnings per share between $6.50 and $7.50.
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Looking ahead, GM plans to ramp up production of Chevrolet Bolt EV and Bolt EUV from 44,000 units this year to 70,000 units next year following record sales. Rental car giant Hertz has agreed to order up to 175,000 electric vehicles from General Motors over the next five years, with the first Chevy Bolt EV and EUV deliveries slated for the first quarter of 2023.
It will also expand its Ultium battery cell plant footprint in Ohio, with a second facility opening next year, a third in 2024 and a fourth planned. GM has successfully secured enough battery raw material to scale the company's EV production to more than 1 million units of annual capacity in North America by 2025.
The company's Cruise autonomous vehicle unit, which lost $497 million during the quarter, plans to expand its robotaxi service in San Francisco to Austin, Texas, and Phoenix by the end of the year. The division is expected to generate $1 billion in revenue in 2025.
The company will discuss the rapid scaling of its EV portfolio further during an investor day on Nov. 17.
GM shares are down approximately 41% year to date.
The Associated Press contributed to this report