General Motors Notches Larger 3Q Profit, Cites Returning U.S. Demand

By Matt Grossman

General Motors Co. logged a larger third-quarter profit, with the company citing strong pickup-truck and sport-utility-vehicle sales as part of a resurgence in U.S. vehicle demand.

The Detroit-based car maker posted net income of $4.05 billion, or $2.78 a share, compared with a profit of $2.35 billion, or $1.60 a share, in the same three-month period a year earlier. In 2020 and 2019, the net-income figures included $40 million and $38 million, respectively, that went to dividends on subsidiary preferred stock.

On an adjusted basis, GM's profit was $2.83 a share. Analysts surveyed by FactSet had expected an adjusted profit of $1.38 a share.

Revenue was $35.48 billion, nearly flat from the level of $35.47 billion in last year's third quarter. Analysts had forecast revenue of $35.43 billion.

U.S. sales improved sequentially each month in the period, GM said. Sales of pickup trucks were strong despite tight inventory, and the company's full-size SUVs gained in U.S. market share, GM said.

Total world-wide vehicle sales were 1.8 million, down slightly from 1.9 million in last year's third quarter. Volumes rose in the Asia-Pacific, Middle East and Africa regions while declining year over year in the U.S. and in North America as a whole.

Write to Matt Grossman at [e-mail]

(END) Dow Jones Newswires

November 05, 2020 08:10 ET (13:10 GMT)

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