GM’s Crossovers Keep Profit Rolling Through Truck Factory Revamp

• April 26 2018
• David Welch

General Motors Co.’s hot-selling new crossovers are padding profit for the largest U.S. automaker amid a costly transition in its truck factories.

General Motors Co.’s hot-selling new crossovers are padding profit for the largest U.S. automaker amid a costly transition in its truck factories.

Adjusted earnings fell to $1.43 a share in the first quarter, beating analysts’ average estimate for $1.24. The Chevrolet Equinox and GMC Terrain drove better-than-expected revenue and buoyed GM through downtime at pickup factories that shut down early this year for retooling to build redesigned pickup models.

“Results in this quarter were in line with our expectations with planned, lower production in North America related to the transition to our all-new Chevrolet Silverado and GMC Sierra,” Chief Executive Mary Barra said in a statement. “We are on plan to deliver another strong year in 2018.”

GM has set an ambitious target to match last year’s record earnings in spite of the changeover involving its lucrative truck line. The company is counting on continued growth in China and from new sport utility vehicles in the U.S. to make up for slumping passenger-car sales and the pickup revamp.

The Detroit-based company said revenue slipped to $36.1 billion, exceeding analysts’ average projection of $34.7 billion. GM shares rose 3.5 percent to $39.45 as of 7:04 a.m. in New York, before regular trading.