GM Beats Estimates as High Truck Prices Help Offset Lost Output

© Bloomberg. General Motors Co. Chevrolet Silverado trucks are displayed at a car dealership in Tinley Park, Illinois.


(Bloomberg) — General Motors Co (NYSE:). reported its first quarterly loss since it emerged from bankruptcy, but the damage was less than expected and the automaker said sales have recovered steadily from a swoon earlier in the year.

Higher prices for its cash-cow pickup trucks in the U.S. helped offset a loss of production and sales from the shutdown of its factories and showrooms early in the second quarter to limit the spread of the coronavirus. Sales in May and June improved over April, putting the automaker on a path to remain in the black for the full year.

The automaker said Wednesday it lost 50 cents a share in the latest three-month period, compared with a consensus forecast for a loss of $1.66 per share. That performance underscores the company’s financial resilience in the face of the pandemic in the U.S. and China — its two biggest markets.

Read more: GM to Repay Deferred Employee Compensation Ahead of Schedule

GM said it expects to return to positive cash flow for the rest of the year. It burned through $9 million in cash over the last three months and said it has cash on hand totaling $30.6 billion.

The company’s stock rose as much as 4.1% in premarket trading, up from Tuesday’s close of $26.33.

©2020 Bloomberg L.P.

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