By 
Shares of General Motors Co. were moving higher Tuesday after the automotive company easily topped profit expectations for the latest quarter, with executives discussing some supply-chain improvements despite a “challenging” environment.
The company posted third-quarter net income of $3.31 billion, or $2.25 a share, up from $2.42 billion, or $1.62 a share, in the year-prior quarter. On an adjusted basis, GM
GM,
+2.80%
also earned $2.25 a share, up from $1.52 a share a year before, while analysts tracked by FactSet were anticipating $1.88 a share.
Chief Executive Mary Barra called out on GM’s earnings call that the company completed and shipped out almost 75% of the unfinished vehicles it had in its inventory back in June, exceeding the company’s plans as “gradual” improvements to the supply-chain manifested.
“Short-term disruptions will continue to happen, but we’re taking concrete steps to minimize them and build long-term resiliency,” Barra said on the earnings call. “This includes several strategic supply agreements for mature nodes where supply is most constrained. We are also working directly with semiconductor suppliers, ensuring long-term forecasts to increase transparency and ensure their planning cycles include our volume.”
Read: Tesla isn’t immune to a spending slowdown, Morgan Stanley says while cutting price target
As the company sees improvements in production, Chief Financial Officer Paul Jacobson explained that GM is monitoring dealer and inventory trends to strike the right balance of supply and demand.
“The number of vehicles physically on dealer lots is well below historical levels and continues to be tight at around 20 days,” he said. “Importantly, demand remained strong for our highest-margin projects with very fast turn rates.”
GM’s revenue rose to $41.89 billion from $26.78 billion in the year-ago period. Analysts tracked by FactSet were modeling $42.09 billion in revenue.
Executives stated in the earnings release that they were reaffirming their full-year outlook, which calls for $9.6 billion to $11.2 billion in net income along with $6.50 to $7.50 in adjusted earnings per share.
“We’re delivering on our commitments and affirming our full-year guidance despite a challenging environment because demand continues to be strong for GM products and we are actively managing the headwinds we face,” Barra added in a letter to shareholders.
GM plans to increase production of its Chevrolet Bolt EV and Bolt EUV to 70,000 units next year, up from 44,000 units this year. The company intends to detail “the rapid scaling” of its electric-vehicle business during a Nov. 17 investor day, per the shareholder letter.
GM’s stock has fallen 39% so far this year as the S&P 500
GM,
+2.80%
has lost about 20%.
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