Business

GM 3Q profit falls 7% as auto workers strike cuts production

Posted October 29, 2019 7:00 am

By TOM KRISHER

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.

FILE - In this Oct. 9, 2019, file photo, Yolanda Jacobs, a United Auto Workers member, walks the picket line at the General Motors Romulus Powertrain plant in Romulus, Mich. General Motors reports financial earns Tuesday, Oct. 29. (AP Photo/Paul Sancya, File) The Associated Press

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