General Motors (GM) beats for Q3 but withdraws 2023 guidance amid ongoing strikes

General Motors (NYSE: GM) gained 1% in early trading Tuesday after topping third-quarter results but the auto giant withdrew 2023 guidance as UAW strike costs continued to mount.

Revenue in the quarter rose 5.4% to $44.131 billion, topping the consensus of $42.62 billion. Adjusted EPS was $2.28, easily beating the consensus of $1.88.

"It’s been clear coming out of COVID that wages and benefits across the U.S. economy would need to increase because of inflation and other factors, CEO Mary Barra commented on the ongoing strike. "The current offer is the most significant that GM has ever proposed to the UAW, and the majority of our workforce will make $40.39 per hour, or roughly $84,000 a year by the end of this agreement’s term."

"It’s an offer that rewards our team members but does not put our company and their jobs at risk," she added. "Accepting unsustainably high costs would put our future and GM team member jobs at risk, and jeopardizing our future is something I will not do."

Barra said amid the industry’s changing pricing and demand outlook and higher labor costs, "we have work to do to ensure we achieve low to mid-single-digit EBIT EV margin targets in 2025, and grow our revenue and sustain strong 8-10% EBIT margins in North America."

By StreetInsider.com Staff

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