The largest automaker in the U.S. generated $4.1 billion in revenue excluding special items, up from $2.5 billion a year ago. It’s far better than the $2.1 billion predicted by analysts, up 64% over GM’s third quarter earnings a year ago.
However, the demand that was there increased the average price of the vehicle, allowing GM to maintain a constant sales revenue.
“Sales in the US and China are recovering faster than many expected,” said John Stapleton, GM’s interim CFO. I am receiving it.”
However, a real improvement was seen in the company’s margins, which surged from 8.4% a year ago to 14.9%.
CEO Mary Barra said if the current recovery continues, GM will resume its dividends in mid-2021.
“We know this is a top priority for our shareholders,” she told analysts.
However, the company is still relatively rich in cash. Cash flows from car operations reached $9.1 billion at the end of the quarter from $17.3 billion at the beginning of the year before Covid-19 destroyed the economy to $30.2 billion at the end of the quarter.
And that cash generation gives GM the cash it needs to invest in new products and plants like electric vehicles.
“The strengths of our North American business, especially the heavy truck platforms and heavy SUVs, give us a great opportunity to self-finance our growth. [electric vehicles]”Said Barra.
“We have a full-size pickup plant around the clock to meet the very strong demand for Chevrolet Silverado and GMC Sierra in the US and Canada,” Barra said. “When the plant goes live in early 2022, the capacity to produce full-size pickups will increase significantly.”