|
Last Friday, the 48,000 United Auto Workers union members at GM
ratified a new four-year labor deal with the Detroit company.
The 40-day strike cost GM more than $2 billion according to
analysts.
The Detroit-based automaker reported a 6% increase in
third-quarter U.S. sales, led by its highly-profitable full-size
pickup trucks, SUVs and crossovers.
Virtually all of the pre-tax profits came from its North
American business and its captive finance arm.
In China, where GM reported a 17.5% drop in third-quarter sales,
the company's equity income fell 40% to $300 million.
Last week, GM's smaller U.S. rival, Ford Motor Co, cut its
forecast for operating profit for the year after a disappointing
quarter hurt by higher warranty costs, bigger discounts and
weaker-than-expected performance in China.
GM said the strike by the UAW, which had brought its North
American operations to a virtual standstill, had cost it $1
billion on pre-tax profits in the quarter, or 52 cents per
share.
The No. 1 U.S. automaker said the full-year impact of the strike
would be around $2 per share.
GM said it now expected full-year adjusted earnings per share
between $4.50 to $4.80, down from its previous forecast of $6.50
to $7 per share.
The automaker posted net income in the third quarter of $2.3
billion, or $1.60 a share, down from $2.5 billion, or $1.75 a
share, a year earlier. Excluding one-time items, GM earned $1.72
a share. Analysts had expected $1.31, on average, according to
IBES data from Refinitiv.
Revenue fell slightly to $35.47 billion from $35.79 billion,
above analysts' estimates of $33.82 billion.
(Reporting By Nick Carey)
[© 2019 Thomson Reuters. All rights
reserved.] Copyright 2019 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
