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General Motors (GM) posted much stronger-than-expected third quarter earnings and full-year profits in the United States and China.
GM said earnings for the three months ending in $ 1.87 per share, well ahead of the consensus Street of $ 1.25 and up 41.7% from the same period last year. Group sales rose 6.4%, the company said, to $ 35.8 billion, as well as 11.2% to 1.98 million. However, GM said it sees full-year profits at the top of the range, citing favorable tax changes, with earnings of between $ 5.80 and $ 6.20 per share.
"Our disciplined approach to the U.S. market, combined with strength in China and further growth of GM Financial," said CFO Dhivya Suryadevara. "We will continue to take actions to mitigate headwinds including foreign currency volatility and commodity costs."
General Motors shares were marked 7% higher in pre-market trading following the results, showing an opening price of $ 35.85 each, a move that would trim the stock's year-to-date decline to around 11% and value the Detroit, Mi. -based icon at more than $ 50 billion.
GM said net income from operations in North America rose 36.7% to $ 2.83 billion, even as deliveries fell 9.8% to 834 million, although a rise in average transactions prices (ATP) rose margins to improve to 10.2% part to US tariffs on steel and aluminum imports. China deliveries were also lower, falling 14.8%, but total North American total topped 836 million units.
Last week, the Ford Motor Co. (F) topped with a quarterly rate of 29 cents per share on sales of $ 37.6 billion was just shy of the consensus forecast. Ford also reiterated its full-year guidance on Wednesday, which calls for adjusted earnings between $ 1.30 to $ 1.50 per share and positive cash flow that will be lower than in 2017.
Jim Hackett Ford CEO Jim Hackett, President of the Ford Trust, said, "The company is continuing to grow. in capital allocations and nimble enough for a fast-changing world.
"With products like the ST Edge and Ranger launching in the United States and the SUV Territory in China, we're also building our product portfolio to build our strengths and meet shifting consumer demand," Hackett said.
Ford shares were marked 2.8% higher at pre-market trading at $ 9.69 each.
However, the world's biggest market is showing signs of weakness, as the impact of the US-China war bites, and car sales fell 11.6% last month to 2.39 million units, the biggest slump in at least seven years, according to official data from the China Association of Automobile Manufacturers.
Ford, as well as GM, may also be vulnerable to any disruption in the China supply chain should Beijing – or President Donald Trump – up the stakes in their current trade standoff that has slapped tariffs over $ 300 billion worth of goods. U.S. International Trade Administration reported that U.S. automakers imported $ 18 billion worth of car parts from China last year, including nearly a third of all braking system components.
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