General Motors pulls full-year guidance due to strikes

(Sharecast News) - General Motors posted better-than-expected third-quarter earnings on Tuesday but said it was pulling its annual guidance due to the impact of strikes. Third-quarter net income declined 7.3% to $3.1bn, with revenue up 5.4% to $44.1bn. Analysts were expecting revenue of $43.7bn.

Adjusted earnings per share came in at $2.28, up from $2.25 in the same period a year earlier and ahead of expectations of $1.88.

GM said it was withdrawing its guidance for the year due to volatility caused by strikes. It had previously guided to between $12bn and $14bn in adjusted earnings and net income attributable to shareholders of $9.3bn to $10.7bn.

Chief financial officer Paul Jacobson said in a briefing with reporters that strikes by the United Auto Workers cost the company $200m during the third quarter and $600m so far in the fourth.