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UPDATE 2-GM profit tops estimates, sees strong full year

Updated: 31-10-2018 17:09 IST
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 $2.53 billion, or $1.75 a share, compared with a loss last year of $2.98 billion, or $2.03 a share. Last year's quarter included a charge related to Europe.

Excluding one-time items, GM earned $1.87 a share in the third quarter, easily beating the $1.25 analysts polled by Refinitiv estimates had expected.

Revenue in the quarter rose 6.4 percent to $35.8 billion, above the $34.85 billion analysts had expected.

GM was able to push through higher pricing, mostly in North America, allowing it to benefit by $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 $5.80 to $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)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)