General Motors (GM) has revised upwards its profit expectations for this year following a strong first quarter, driven by strong truck sales in the United States. This momentum has prompted the company to raise its forecasts for 2024 by $500 million. SUVs have proved to be the star performers among carmakers, and GM now expects increased profitability from these sales.

Investor reaction was very positive, with GM shares up around 5%, marking their best day since the start of the year. The carmaker posted adjusted earnings of $2.62 per share, beating expectations by 24%, and sales of $43 billion, 2% above forecasts in a tense economic environment.

GM also raised its net profit guidance for the year to between $10.1 billion and $11.5 billion, an increase of $300 million. CFO Paul Jacobson highlighted the resilience of the US consumer despite rising interest rates, noting that prices had remained stable during the quarter, demonstrating a degree of price resilience that could weaken over the course of the year.

This strength in the US market allows GM to offset some weaknesses in China, where competition with Chinese carmakers is fierce. To date, GM's shares have risen by 20%, marking an exceptional year for the company.

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