DETROIT — General Motors on Tuesday said its third-quarter net income fell 8.7 percent from a year earlier to $2.3 billion, including a $1 billion hit from the first two weeks of the UAW's strike.
GM said it expects the 40-day strike, which ended last Friday after workers ratified a new four-year contract, to reduce 2019 earnings by about $2 per share, or nearly $3 billion. The last four weeks of the strike were in the fourth quarter.
GM also lowered its full-year guidance range by roughly the cost of the strike, which cut production by 300,000 units, CFO Dhivya Suryadevara told reporters.
“If you look at our key operating segments, primarily North America, [the quarter] was solid,” Suryadevara said. “Taking a step back, it's important to look at what the underlying business looks like, and the underlying business was strong this quarter."
GM shares rose 4.3 percent to close at $38.21 on Tuesday.
Adjusted earnings before interest and taxes decreased 5.9 percent from a year earlier to $3 billion. Revenue declined 0.9 percent to $35.5 billion, and its profit margin slipped 0.4 of a percentage point to 8.4 percent.
In North America, GM earned $3 billion, up 7 percent from a year earlier. It lost $65 million in its international regions, vs. a $139 million profit a year ago.