General Motors announced its third-quarter earnings on Tuesday, with results beating analysts’ expectations and easing concerns about a possible recession.
The automaker reported diluted earnings per share of $2.25 for the third quarter, beating the expected $1.88. Net income landed at $3.3 billion, up from $2.4 billion last year. Revenue increased to $41.9 billion from $26.8 billion a year ago.
General Motors said 90% of its operating profit was generated in North America, including $3.9 billion, mainly from the company’s trucks and SUVs. EBIT-adjusted net margin in North America rose to 11.2%, increasing almost a whole point.
GM’s Chief Financial Officer Paul Jacobson said concerns about slowing demand haven’t yet been an issue for the company. “We haven’t seen any direct impact on our products. Pricing remains strong. Demand remains strong,” he said.
Jacobson said General Motors expects U.S. industry sales of 15 million vehicles next year, compared to estimates of around 13.7 million in 2022.
Chief Executive Mary Barra spoke to analysts by phone on Tuesday and described the current environment as “challenging.” The CEO said there has been a “gradual improvement” in supply chains and the shortage of semiconductor chips, noting that the company completed and shipped nearly 75% of the unfinished vehicles it had held in inventory in June.
The positive results led General Motors to reaffirm its guidance for full-year net income of $9.6 billion to $11.2 billion and its expectations for full-year diluted earnings per share of between $5.76 and $6.76.
GM shares saw a boost of nearly 2% in early trading on Tuesday.
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