The US automaker posted a better-than-expected third-quarter profit as its new lineup of pickup trucks and other revamped models boosted North American results.
Profit margins in the core North American market hit a two-year high on the strength of vehicles like the Chevrolet Silverado pickup and Impala sedan, which allowed GM to boost pricing by $400 million.
While GM’s China operations remained stable, the company also offered a more optimistic picture of Europe, where GM’s revenue rose for the first time in two years.
GM’s shares rose as much as 4.1 %, the largest one-day percentage gain in nearly two months. They were still up 3.4 % at $37.27 late on Wednesday afternoon on the New York Stock Exchange.
GM Chief Financial Officer Dan Ammann said the No. 1 U.S. automaker’s European unit remains on track to achieve its target of breaking even in the next year or so. GM has lost money in Europe for 13 straight years.
“The story in Europe overall is really consistent with the plan we laid out,” he told reporters. “Our overall objective of getting to break-even by mid-decade, clearly we’re well on track toward that.”
GM’s third-quarter net income attributable to common shareholders fell to $757 million, or 45 cents a share, compared with $1.48 billion, or 89 cents a share, in the year-ago quarter. But operating earnings rose almost 15 percent to $2.64 billion. Revenue rose 3.7 percent from last year to $38.98 billion, but that was short of the $39.49 billion analysts had expected.