General Motors Co. on Tuesday said it made $3.3 billion in net income in the third quarter, up from 2021’s third quarter profits of $2.4 billion despite a tight supply inventory still hindering sales and lessening demand amid economic uncertainty.
GM’s revenue was $42 billion in the quarter, up from the $27 billion the company made in the same three months last year.
The Detroit automaker is still aiming to meet its projected guidance of net income between $9.6 billion and $11.2 billion, and adjusted pre-tax earnings of between $13 billion and $15 billion for the year. For the year so far, GM has made $7.9 billion, down from the $8.2 billion it had this time last year.
“We’re delivering on our commitments and affirming our full-year guidance despite a challenging environment because demand continues to be strong for GM products and we are actively managing the headwinds we face,” GM CEO Mary Barra wrote in a letter to shareholders on Tuesday.
On a call with media Tuesday, GM Chief Financial Officer Paul Jacobson said the company hasn’t seen “any direct impact on our products” from economic headwinds. GM’s average transaction price was $51,911 in the third quarter, according to Cox Automotive. By comparison, the automaker’s ATP was $40,053 in the third quarter of 2017.
“Pricing remains strong, demand remains strong for our products, but we can’t ignore what others are saying out there and what others are seeing out there, so we’re going to continue to be agile with both our cost investments as well as as our production,” he said.
Earlier this month, GM reported its U.S. dealers sold 555,580 vehicles in the third quarter, up 24% from last year as inventory levels improved and demand remained strong despite rising interest rates.
GM’s net income margin for the quarter was 7.9%. Pre-tax earnings in GM North America totaled $3.9 billion in the quarter. GM International’s pre-tax earnings were $334 million.
Ford Motor Co. reports its third-quarter earnings Oct. 25. Stellantis NV, maker of Ram trucks and Jeeps, will release its shipments and revenues Nov. 3.
