GM’s Third Quarter Earnings Fall, Unsurprisingly

The UAW strike has cost GM quite a bit, in the end. Net income in the third quarter of 2019 fell 8.7%, as compared to a year earlier and GM said it expects the 40-day strike to reduce 2019 earnings by nearly $3 billion.

The company remained optimistic, though, saying that the 40-day strike showed its resilience.

“Our underlying third-quarter performance demonstrates the ongoing resilience and earnings power of our company, building on our leading truck and crossover franchises, and transformational cost actions,” GM CFO Dhivya Suryadevara said in a statement. “Our focus going forward will continue to be the disciplined execution of our business plan.”

Indeed, GM Financial’s profits were up 43% for the quarter and revenue was only down 0.9%. GM shares were also up 1.5% this morning in premarket trading.

Following the end of the strike, GM plants are back in operation and in a statement CEO Mary Barra was quick to highlight the virtues of the newly ratified labor contract signed late last week.

“Our new agreement maintains our competitiveness, preserves our operating flexibility and allows us to continue improving our quality and productivity,” said Barra.