DETROIT (AP) – Even as auto sales start to ebb in the U.S., China and elsewhere, General Motors posted a strong third-quarter profit, blowing past Wall Street expectations on rising prices in North America and surprising resilience in China.
The automaker reported a $2.5 billion third-quarter net profit Wednesday, or $1.75 per share. Excluding one-time items, the company made $1.87, far exceeding analyst projections of $1.25 per share, according to a survey by FactSet.
Revenue jumped 6.4 percent to $35.8 billion, also topping forecasts. The Detroit automaker put up a record income of $500 million from July through September in China despite declining sales and rising trade tensions. And its pretax profit in North America, its most lucrative market, rose 33 percent to $2.8 billion with a profit margin of 10.2 percent.
Chief Financial Officer Dhivya Suryadevara said the company was helped in the quarter by getting strong prices for the newly redesigned Chevrolet Silverado and GMC Sierra pickup trucks.
“Our discipline came through this quarter,” Suryadevara said, adding that she believes strong prices are sustainable as GM builds inventory of light-duty pickups and rolls out heavy duty versions. “We feel very confident about the pricing.”
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