GM quarterly profit falls but beats Wall Street estimates - Business Insider

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GM posts a lower quarterly profit but beats Wall Street estimates thanks to strong US pickup and SUV sales

posted a decline in profits year-over-year, but still beat analysts estimates for Q3 by a decent margin.GM estimated that a 40-day strike against the automaker cost in $1 billion in the quarter, with two weeks of lost production.

GM said in a statement that pickup-truck and SUV sales helped the automaker to achieve a 10.8% margin. A 40-day strike by 49,000 workers — the longest against a major car company in 50 years — was offset by the good truck and SUV sales."The work stoppage in the US negatively affected North American business results in the third quarter and expected results for the year," the company said. "In the third quarter, about two weeks of vehicle production was lost.

For the calender year, GM estimated that the strike would cost approximately $2 per share. But the company was clearly glad to have minted a new four-year contract with UAW-represented membership at GM factories. China's declining sales environment weighed on GM's results, but the company highlighted Cadillac's performance in the region.

 

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