Sales of high-profit models propel GM to best-ever 3Q

General Motors Co. on Tuesday reported record third-quarter profit and sales, beating analysts’ estimates on demand for light trucks in the U.S. and luxury vehicles in China.

Net income more than doubled to $2.8 billion, GM said in a statement, and adjusted earnings of $1.72 a share exceeded the $1.47 projected by analysts in a Bloomberg survey. Revenue jumped 10 percent to $42.8 billion, giving the company confidence to say full-year earnings will end up near the high end of its previously stated range.

“We’ve remained on track to deliver the performance we

promised at the beginning of the year,” Chief Financial Officer Chuck Stevens told reporters at the automaker’s Detroit headquarters. “In essence, another record year.”

Demand for high-margin sport utility vehicles in North America drove GM’s performance, along with Chinese buyers’ increased appetite for pricey models from the Cadillac and Buick brands. North American earnings before interest and taxes rose about $200 million to $3.5 billion, also the best ever for the period. One reason is the company’s strategy of increasing sales to individuals, which have higher margins than fleet deliveries.

Automakers are benefiting from U.S. industrywide demand that may eke out a record seventh straight year of sales gains, even amid signs that deliveries have started to plateau. GM said it now expects full-year adjusted earnings near the high end of its previously stated range of $5.50 to $6 a share.

Still, investors’ concerns about a potential slowdown have hurt automakers’ shares, with GM’s stock price slipping about 3 percent so far this year through Monday’s close. GM shares fell $1.38. or 4.2 percent, to close at $31.60.

In the United States, GM has benefited from stable sales and better pricing on its cars, which are $5,000 higher than the average competitor.

Europe and South America continue to be trouble spots, with Stevens saying that the British vote to leave the EU has derailed GM’s push to make a profit in Europe this year. Even so, GM was able to pare losses in Europe to $142 million in the quarter from $231 million a year earlier. South America lost $121 million, compared with $217 million a year ago.

The company had said in July that the U.K.’s decision to exit the European Union could cost it $400 million in this year’s second half, as an expected drop in demand hits its British Vauxhall brand. Currency fluctuations related to the U.K. and EU divorce cost GM $100 million in the third quarter, meaning the remaining $300 million may come in the fourth quarter.

To counter the effects of the British exit and try to reach its goal of breaking even this year in Europe, GM is looking at cost cuts and raised prices by 2.5 percent in the U.K. starting Oct. 1, Stevens said. “We will look across all aspects of the business and take whatever action is necessary.”

Equity income from China, where its operations are run as joint ventures with local automakers, held steady at $459 million compared with $463 million in the same quarter last year. China vehicle sales rose 9 percent to a record 2.7 million so far this year, and profitable crossover SUVs such as the Buick Envision and Cadillac XT5 are making gains.