General Motors significantly exceeded Wall Street revenue expectations for the third quarter thanks to its highly profitable trucks and SUVs in North America
John Stapleton, interim chief financial officer of GM, said the automaker’s sales in US and China « are recovering faster than expected, and GM is benefiting from strong customer demand for our new vehicles and services, in particular our full-size pickup trucks and SUVs »
GM’s net profit increased 74% to $ 4.05 billion from $ 2.35 billion in the third quarter of 2019
GM repaid $ 5-2 billion of its revolving credit facilities in the third quarter and an additional $ 3 billion in October The company plans to pay off the balance by year-end while maintaining a strong cash balance
/ p>
Former CFO Dhivya Suryadevara told investors in July that the automaker expected third quarter to be « slightly stronger » than fourth quarter She unexpectedly left GM for digital payments company Stripe in August
Suryadevara said if the monthly sales pace in the second half was 14 million, investors should expect a pre-tax profit of $ 4 billion to $ 5 billion in the fourth quarter In this scenario, GM expected to generate free cash flow of $ 7 billion to $ 9 billion Suryadevara refused to issue official guidance at the time, citing the fluidity due to the coronavirus pandemic
Cox Automotive estimated the US sales pace at 153 million in the third quarter, which should allow GM to outperform these projections
GM reported adjusted pre-tax profit of $ 3 billion, or $ 172 earnings per share, in the third quarter of 2019 Revenue was $ 35 47 billion
Ford Motor and Fiat Chrysler have exceeded Wall Street expectations for better-than-expected demand for trucks and SUVs in North America These are segments in which GM also has significant market share
U of GMS vehicle sales fell 174% as the fourth quarter approached, including a 99% drop in the third quarter That compared to a 5% drop
Data is a real-time snapshot * Data is delayed by at least 15 minutes Global business and financial news, stock quotes and market data and analysis
General Motors, NYSE: GM, Profits
World News – US – General Motors shares jumped after truck sales generated big profits in third trimester
SOURCE: https://www.w24news.com
