Strikes trim GM profit in an otherwise strong quarter; more losses anticipated if picketing spreads

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A strike by autoworkers against General Motors is expected to cut the automaker's pretax earnings by $800 million this year, and another $200 million per week after that

DETROIT — A strike by auto workers against General Motors is expected to cut pretax earnings by $800 million this year, and another $200 million per week after that, the company's chief financial officer said.

And those figures include only factories that are on strike now with less than a third of the company's workforce on the picket lines, so if more plants are added by the United Auto Workers union, the losses will pile up further, CFO Paul Jacobson told reporters.

Those strike are already taking a toll.

GM on Tuesday posted net income of more than $3 billion from July through September, down 7% from the same period last year due to lost production from the strike, and also increased warranty costs, Jacobson said. The company also withdrew its previous full-year pretax earnings estimates, citing uncertainty over the length of the strike and how many factories would be shut down

However, excluding one-time items, GM said made $2.28 per share, handily beating Wall Street estimates of $1.87. Revenue of $44.13 billion rose 5.4% and also exceeded estimates of $42.48 billion, according to data provider FactSet.

That sent shares up 1.2% before the opening bell Tuesday.

The UAW has been on strike since Sept. 15 — nearly six weeks — against GM and its Detroit competitors, Ford and Jeep maker Stellantis. So far the union has spared factories that make GM's most profitable vehicles, pickup trucks and large SUVs, from its targeted strikes. Yet the UAW demonstrated again this week that risks to those money making facilities can rise the longer the strike goes