DETROIT (Reuters) - General Motors Co (GM.N) posted a better-than-expected net profit on Thursday as high-margin pickup trucks, SUVs and crossovers helped overcome slowing sales in the United States and China, and reiterated its full-year earnings forecast.
GM shares gained 3.8% in early trading to over a one-year high.
Virtually all of the No. 1 U.S. automaker’s profit came from North America, where it posted a profit margin of 10.7%. J.P. Morgan analyst Ryan Brinkman said the truck profits were stronger than expected.
Evercore ISI analyst Chris McNally, in a research note entitled, “Truck, truck and away...,” said the rest of the year and 2020 could be the company’s “time to shine.”
“The alarm clock may be softly ringing for GM to finally reawaken from its trading range slumber,” he said of the stock.
Chief Executive Mary Barra said in a statement, “Our results demonstrate the earnings power of our full-size truck franchise, with more upside to come.”
GM’s strong showing came despite slumping industry demand in China, the world’s largest auto market.
Other automakers, including U.S. rival Ford Motor Co (F.N) and Germany’s Daimler AG (DAIGn.DE), offered disappointing forecasts last week.
GM also faces an escalating price war in the lucrative U.S. pickup truck segment for its newly-revamped Chevrolet Silverado.
Fiat Chrysler Automobiles NV (FCA) (FCHA.MI) (FCAU.N) has been battling for market share with its all-new Ram pickup and outsold the Silverado in the second quarter.
FCA took the market by surprise on Wednesday by sticking to its full-year
