GM CEO Mary Barra Addresses Detroit Economic Club
General Motors Chief Executive Officer Mary Barra address the Detroit Economic Club October 28, 2014 in Detroit, Michigan. Photograph by Bill Pugliano—Getty Images

GM Beats Expectations on Strong Truck and SUV Sales

Oct 25, 2016

General Motors Co reported much higher-than-expected third-quarter earnings on strong North American truck and SUV sales, blowing past fears that a U.S. market slowdown would dent profitability.

GM said on Tuesday that it expected full-year results would be on the "high end" of its previous forecasts of $5.50 to $6.00 a share. Rival Ford Motor Co in July warned that a slowing U.S. auto market would put its full-year profit forecast at risk.

GM's results and its outlook depend primarily on strong U.S. and Chinese economies. The company said it lost money in Europe, South America and in Asian markets outside of China.

The loss in Europe came to about $100 million in the third quarter. GM affirmed its forecast of break-even results from that market this year despite a projected $400 million hit during the second half of the year from the post-Brexit decline of the British pound.

Still, Chief Financial Officer Chuck Stevens told reporters that meeting the forecast for Europe this year would be "very, very challenging."

GM shares were up 1 percent at $33.30 in premarket trading.

Overall, GM said third-quarter net income more than doubled to $2.8 billion, or $1.76 a share, from a year earlier.

Excluding a $110 million gain from litigation, earnings of $1.72 a share beat the analysts' average estimate of $1.45, according to Thomson Reuters I/B/E/S.

All products and services featured are based solely on editorial selection. FORTUNE may receive compensation for some links to products and services on this website.

Quotes delayed at least 15 minutes. Market data provided by Interactive Data. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Terms & Conditions. Powered and implemented by Interactive Data Managed Solutions