General Motors Reports 3Q Income of $3.5B
Automaker General Motors shared news of a strong third quarter Wednesday when the company released its third-quarter financial results.
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“Our third-quarter performance demonstrates our determination to manage risks and deliver strong business results while continuing to advance the future of mobility,” Chairman and CEO Mary Barra said in a release.
GM reported third-quarter revenue of $38.5 billion, up 6.4% compared with Q3 2017. It also reported EBIT-adjusted income of $3.2 billion, up 25% year over year, and income of $2.5 billion.
In addition, the automaker reported EBIT-adjusted earnings per share (EPS) of $1.87, up from an expected EPS of $1.25, CNBC reported.
Earlier this year, GM announced it would begin reporting sales on a quarterly basis, as opposed to monthly. In the third quarter, GM saw North American sales of 833,712 units, 700,000 of which came in the U.S. (at an average transaction price of $36,000, up about $800 year over year and $4,000 above the industry average). The North American sales total for the quarter, however, was down 9.8% compared with Q3 2017.
Sales were also down in China, where GM sold 835,934 units, down 14.9% year over year. Chevrolet sales in China, however, were up 10% year over year, GM reported, “led by higher content crossovers including the Equinox, which saw 29 percent growth compared to a year ago.”
“Despite challenging market conditions, GM China achieved record third-quarter equity income, driven by a strong mix of vehicles in popular segments, led by record Cadillac sales and strong Chevrolet deliveries,” the GM earnings report states. “GM China is introducing 10 new or refreshed models in the second half of 2018.”
Cadillac sales were also up in China. GM reported Cadillac sales in the third quarter were up 4% year over year and were up 20% in the year to date.
Overall, total sales for the quarter were down 14.7% year over year, and are down 12.4% in the year to date. Sales in the year to date were down 1.8% in North America and 2.5% in China.
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GM shares were up 9.78% as of Wednesday afternoon following the morning’s earnings announcement.
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