Market News

GM swings to a profit despite decelerating sales

31/10/2018 13:43

(Sharecast News) - General Motors turned in strong beats on both the top and bottom line on Wednesday, despite selling fewer vehicles during the third quarter of its trading year. The automaker revealed that although it sold 14.7% fewer cars in the three months leading to 30 September than it had done a year earlier, GM was able to raise its prices across the US by an average of $800 per vehicle to over $36,000, helping it set a new record for transaction prices at about $4,000 above the industry average. Sales fell across every region and every brand. However, GM swung to a profit during the quarter of $2.5bn, or $1.75 a share - a marked improvement compared to the loss of $2.98bn, or $2.03 a share, it turned in a year earlier. GM drove away with $35.79bn in revenues throughout the quarter, a 6% increase year-on-year that was ahead of the $34.85bn predicted by analysts. Chief financial officer Dhivya Suryadevara said: "Our disciplined approach to the U.S.

market, combined with strength in China and further growth of GM Financial, drove a very strong quarter. "We will continue to take actions to mitigate headwinds including foreign currency volatility and commodity costs." As of 1340 BST, GM shares had taken off 6.77% to $35.81 each.

Investors should be aware that past performance is not a reliable indicator of future results and that the price of shares and other investments, may fall as well as rise and the amount realised may be less than the original sum invested.

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