The GM logo is seen on the facade of the General Motors headquarters in Detroit on March 16, 2021.
Rebecca Cook | Reuters
DETROIT — General Motors beat Wall Street’s third-quarter expectations on Tuesday, as it battles through ongoing labor strikes by the United Auto Workers union that’s costing the automaker roughly $200 million a week in lost vehicle production.
The labor strikes, which started Sept. 15, have cost the automaker roughly $800 million in pre-tax earnings due to lost vehicle production, including $200 million during the third quarter, according to CFO Paul Jacobson.
Due to the ongoing volatility caused by the strikes, GM is pulling its previously announced earnings guidance for the year that called for $12 billion to $14 billion in adjusted earnings and net income attributable to stockholders of between $9.3 billion and $10.7 billion.
Prior to the UAW strikes, Jacobson said the company was on track to achieve “toward the upper half” of its earnings forecast.
Here’s how the company performed in the third quarter, compared with average estimates compiled by LSEG, formerly known as Refinitiv:
- Adjusted earnings per share: $2.28 versus $1.88, estimated
- Revenue: $44.13 billion versus $43.68 billion, estimated
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