The US car manufacturer General Motors performed better than expected in the third quarter despite the ongoing strike.
However, the management around boss Mary Barra withdrew the annual forecast due to the uncertainties surrounding the labor dispute that had been going on for weeks, as CFO Paul Jacobson announced on Tuesday in Detroit. The bottom line profit fell by 7.3 percent to 3.1 billion US dollars (2.9 billion euros) in the third quarter despite a solid increase in sales.
It was said that the strike cost $200 million in the third quarter – and each subsequent week costs another $200 million. Adjusted for special items, earnings per share in the past quarter were higher than analysts had expected on average. This hardly helped General Motors shares. It is temporarily down 0.24 percent on the NYSE at $29.15.
The group’s sales increased by a good five percent year-on-year to $44.1 billion between July and September. During the period, GM increased global sales by 1.6 percent to around 981,000 vehicles. Earnings before interest and taxes adjusted for special items fell by 17 percent to $3.6 billion.
Boss Barra wrote in a letter to shareholders that the company’s offer currently on the table of the powerful UAW auto union is the highest that GM has ever made.
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DETROIT (dpa-AFX)
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