General Motors reported third-quarter results showing that rising commodity and logistics expenses outweighed higher profit and revenue. The company approved a $20 billion multiyear buyback plan despite the financial pressure. General Motors shares slid after the automaker disclosed that increased costs tied to the Iran conflict and global supply chain disruptions eroded margins. Revenue and profit both rose compared to the prior year, but operating expenses climbed faster, denting investor confidence.
GM noted that steel, aluminum and energy prices surged following geopolitical tensions, while shipping and transportation costs remained elevated. The approved $20 billion buyback program aims to return value to shareholders over multiple years, even as the company navigates ongoing cost pressures. Analysts said the expense outlook remains uncertain, with potential for further volatility in commodity markets and logistics.
GM did not provide specific fourth-quarter guidance but indicated it expects to manage costs through continued efficiency measures and pricing strategies. The stock decline reflects broader market concerns about inflation and geopolitical risk impacting corporate earnings.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing