General Motors announced its financial results for the third quarter of 2022, including $2.55 adjusted earnings per share, an EBIT-adjusted net income of $4.3 billion, and a global revenue of $41.89 billion. The earnings beat Wall Street’s expectations by a large margin, with a slightly smaller-than-expected but still record-beating third-quarter revenue.
Compared to last year, there is a $1.36 billion increase in EBIT-adjusted net income and a $15.1 billion increase in revenue, although the EBIT-adjusted margin dropped to 10.2 percent (-0.7 percent). As reported by CNBC, the results follow a period after the pandemic that is characterized by lower sales but higher profits on SUVs and pickup trucks, due to issues with vehicle supply.
Read: GM Will Be Able To Cover All Of Its Energy Needs From Renewable Sources By 2025
In a letter to investors, GM’s CEO, Mary Barra, said they affirm their full-year guidance despite the “challenging environment” and the “headwinds” they face, thanks to the demand for GM products that continues to be strong. Barra commented on the “improved supply chain conditions” which helped GM to retain leadership on full-size SUVs with the Cadillac Escalade.
She also mentioned that GM had an 8 percent share of the EV market in the US in Q3 2022 thanks to the “record sales” of the Chevrolet Bolt. The CEO hopes to increase that number in the future with the help of the recently revealed Chevrolet Equinox EV and GMC Sierra EV models, upcoming Ultium-based EVs, and the expected increase in Chevrolet Bolt production (70,000 units in 2023 from 44,000 units in 2022).
General Motors had previously announced a full-year net income expectation between $9.6-13 billion and adjusted earnings expectations between $13-15 billion ($6.5-7.5 per share), with CFO Paul Jacobson predicting they will hit the “midpoint” of that range. Jacobson acknowledged the economic concerns but said there is no “direct impact” on GM products as the company continues being “agile” and seeing “strong demand”.
Speaking about the 95,000 GM vehicles that were in limbo since last July due to the semiconductor shortage, the CFO revealed that 75 percent of them have already been completed, with the entire batch expected to reach dealerships before the end of the year.
China continues to be GM’s strongest market in terms of sales, although Jacobson said it is not “decisive” to the financial performance of the brand answering concerns about slowing growth. GM’s earnings in China for Q3 were $330 million, representing a $60 million increase compared to last year. For a good measure, Q3 earnings in North America are $3.9 billion, or $1.8 billion higher than last year.
Earnings of the GM Financial arm dropped to $911 million (-$182 million) as expected, following its record post-pandemic performance. The Cruise majority-owned subsidiary for autonomous technology posted a $500 million loss in the third quarter, accumulating a $1.4 billion loss in 2022.
Mary Barra sent out an invitation for the GM Investor Day webcast scheduled for November 17. There, we will also learn more about the “rapid scaling” of General Motors’ EV portfolio.