General Motors Company (NYSE:GM) delivered record third quarter 2022 revenue and double-digit EBIT-adjusted margins, driven by improved supply chain conditions for its full-size pickup, full-size SUV and Cadillac Escalade segments.
The Detroit automaker posted 3Q revenue of US$41.89 billion, slightly less than the $42.22 billion expected by analysts, but beat expectations on adjusted earnings per share of US$2.25 compared to $1.88 for the same period last year.
In a letter to shareholders, GM CEO Mary Barra wrote the company affirmed its guidance to position it for volume growth with flexibility, efficiency and increased EV profitability over time.
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“This keeps us on track to deliver our third consecutive year of full-size pickup leadership, and our 22nd year as the full-size SUV leader. To build our truck leadership and help maintain our strong margins, Chevrolet and GMC recently unveiled new midsize and heavy-duty pickups that will launch next year,” Barra wrote in the letter.
General Motors said it expects full-year net income of between $9.6 billion and $11.2 billion and adjusted earnings before interest and taxes (EBIT) of between $13 billion and $15 billion, or $6.50 and $7.50 per share.
“We also earned more than 8% of the US electric vehicle market in the third quarter thanks to record sales of the Chevrolet Bolt EV and Bolt EUV. Our dealers and customers have embraced the Bolt because of its range, technology and value, helping it outsell Ford’s Mach-E by more than two to one in September,” she wrote.
GM said it would increase production of its Chevrolet Bolt EV and Bolt EUV from 44,000 units this year to 70,000 units next year.
Key to this, according to GM, is greater vertical integration.
“That’s why we are building battery cells in Ohio through Ultium Cells LLC, with a second US plant opening next year, a third in 2024 and a fourth planned,” Barra wrote, adding, “For growth beyond 2025, we continue to secure our future with strategic supply agreements and direct investments in natural resource recovery, processing and recycling.”
Late morning, GM shares were up by 3.2%, trading at US$36.86.
Contact the author at susie@proactiveinvestors.com