UPDATE 1-Pickup trucks power GM Q2 profit despite sales drop

General Motors Co posted a better-than-expected net profit on Thursday as high-margin pickup trucks, SUVs and crossovers helped overcome slowing sales in the United States and China and reiterated its full-year earnings forecast. GM shares gained about 3% premarket.

Virtually all of the No. 1 U.S. automaker's profit came from North America, where it posted an adjusted pre-tax margin of 10.7%. "Our results demonstrate the earnings power of our full-size truck franchise, with more upside to come," Chief Executive Officer Mary Barra said in a statement.

GM's strong showing came despite slumping industry demand in China, the world's largest auto market, and an escalating price war in the lucrative U.S. pickup truck segment. Other automakers, including U.S. rival Ford Motor Co and Germany's Daimler AG, offered disappointing forecasts last week.

Fiat Chrysler took the market by surprise on Wednesday by sticking to its full-year profit guidance after a strong performance from its Ram pickup truck in North America helped it defy the industry slowdown. GM's overall U.S. sales fell 1.5% in the second quarter.

In the second quarter, GM's China sales slid 12%, a slight improvement over the 17.5% decline in the first quarter. GM's equity income from its Chinese operations fell to $235 million from $592 million a year earlier.

The company said it still expects full-year 2019 earnings per share in a range from $6.50 to $7. GM reported second-quarter net income of $2.41 billion or $1.66 per share, compared with $2.39 billion or $1.66 per share a year earlier. Excluding one-time items, GM reported earnings of $1.64 per share.

Analysts had on average expected earnings per share of $1.44.