General Motors said it may resume paying dividends next year after a recovery in the global car market drove its third-quarter profits higher.
The Detroit automaker’s net income surged 74 per cent to $4bn from the same period a year ago, even as revenue stayed flat at just under $36bn. Adjusted earnings per share climbed 65 per cent to $2.83, surpassing the $1.83 a share forecast by the 12 analysts polled by FactSet.
Chief executive Mary Barra said the quarter’s performance was driven by the industry’s recovery in the US and China, as well as strong average transaction prices, especially for pick-ups.
“If our current recovery continues, we anticipate reinstating a
dividend at the appropriate level, that balances various capital
allocation priorities,” Ms Barra said. “We know this is a priority for
investors,” she added.
GM, Ford and Fiat Chrysler all shut down factories in the spring as the first wave of Covid-19 infections swept through the US. The production halt tightened the supply of vehicles, and since the plants reopened, the Big Three automakers have scrambled to meet demand.
Some of the higher pricing is a sign that GM’s push to reach a broader market, including buyers of luxury