General Motors Posts $2.8B Profit in Third Quarter; 10.2 Percent Margin
GM's third-quarter 2018 earnings were driven in part by the Chevrolet Silverado.
Photo courtesy of General Motors Co.
General Motors Co. in Detroit today announced third-quarter 2018 earnings results reflecting profitability in all core-operating segments, driven by new full-size trucks and crossovers in North America. In turn, GM China equity income and GM Financial EBT posted third-quarter records.
Third-quarter 2018 results included:
- Strong EPS-diluted of $1.75 and record third-quarter EPS diluted-adjusted of $1.87
- Revenue of $35.8 billion, up 6.4 percent from third-quarter 2017
- GM North America EBIT-adjusted of $2.8 billion and margin of 10.2 percent
- Record third-quarter equity income in China of $0.5 billion
- GM Financial EBT of $0.5 billion, a third-quarter record
GM North America posted margins of 10.2 percent in the third quarter, driven by an increase in average transaction prices that rose to record Q3 highs. The first light-duty 2019 Chevrolet Silverados and GMC Sierras began arriving in dealerships in August.
The automaker reported customer deliveries of the Silverado LTZ and High Country and the GMC Sierra SLT, Denali, and AT4 crew-cab models have exceeded expectations as production ramps up to meet expected demand. GM expects to ship about 120,000 of the new trucks in the second half of 2018. Production of the all-new Chevrolet Blazer will begin late in the fourth quarter.
GM Financial delivered an all-time record for revenue and third-quarter record EBT of $0.5 billion, resulting from portfolio growth and stable credit.
GM China achieved record third-quarter equity income, driven by a strong mix of vehicles in popular segments, led by record Cadillac sales and strong Chevrolet deliveries.
GM China is introducing 10 new or refreshed models in the second half of 2018. The Baojun E200 launched in September. Along with the Buick VELITE 6 unveiled earlier this year, these are the first in a wave of electric vehicles launching in China in the next several years.
As previously announced, GM is increasing production of the Bolt EV in the fourth quarter by 20 percent to meet growing demand. GM has partnered with Delta Electronics to develop faster EV charging technology. GM will deliver a prototype vehicle capable of a 180-mile range with less than 10 minutes of charging.
The automaker reported it is on target to introduce an autonomous taxi service in a dense urban environment. The vehicles will have no steering wheel, accelerator, or brake pad, and will begin operation next year.
For complete details and to see reconciliations of non-GAAP measures to their most directly comparable GAAP measures, click here to download the full press release, or visit the GM Investor Relations website.