STRONGER PROFIT THAN FORECAST

GENERAL Motors Co yesterday posted a far stronger than expected quarterly profit and said its full-year earnings would come in at the high end of its forecast due to strong demand in North America. GM shares jumped 7.6 percent in pre-market trading. The Detroit automaker reported third-quarter net income of $2.53 billion (R37bn), or $1.75 a share, compared with a loss last year of $2.98bn, or $2.03 a share. Last year’s quarter included a charge related to Europe. Excluding onetime items, GM earned $1.87 a share in the third quarter, easily beating the $1.25 analysts polled by Refinitiv estimates had expected. Revenue in the quarter rose 6.4 percent to $35.8bn, above the $34.85bn analysts had expected. GM was able to push through higher pricing, mostly in North America, allowing it to benefit by $1bn in the quarter, offsetting higher commodity costs. |