GM 3Q profit falls 7% as auto workers strike cuts production
DETROIT (AP) — General Motors’ third-quarter net profit fell 7% as a strike by the United Auto Workers union halted U.S. vehicle production.
The Detroit automaker earned $2.35 billion, or $1.60 per share. Excluding some one-time restructuring costs, the company made $1.72 per share, beating Wall Street estimates of $1.38, according to a survey by FactSet.
GM said Tuesday that the strike by the United Auto Workers cost it $1 billion in the quarter, or 52 cents per share, even though only two weeks of the strike took place within the financial reporting period.
GM expects the strike to cost $2.86 billion in net income for the full year.
The strike forced the company to lower its full-year pretax profit guidance from $6.50 to $7 per share, to $4.50 to $4.80.