DETROIT — Only two weeks of a lengthy strike against General Motors took place in the third quarter, but that was enough to dent the company’s net profit by about $1 billion.
GM’s third-quarter net income fell 7% as a strike by the United Auto Workers union brought its U.S. factories to a standstill.
The Detroit automaker still made $2.35 billion, or $1.60 per share, but the strike cost it 52 cents per share of earnings.
Most of the impact from the 40-day strike will hit in the fourth quarter, and GM said Tuesday that it will wind up costing the company $2.86 billion in profits for the full year.
The strike forced the company to cut its full-year pretax profit guidance from $6.50 to $7 per share, to $4.50 to $4.80.
Excluding one-time restructuring costs, the company made $1.72 per share, beating Wall Street estimates of $1.38, according to data provider FactSet.
Revenue fell 0.9% to $35.47 billion, but still surpassed analyst estimates of $34.95 billion.
GM shares rose 4.5% to $38.29 Tuesday.
The 49,000 workers, who ended their strike on Friday, were able to win a mix of pay raises and lump sum payments. They also got an $11,000-per-worker signing bonus, faster pay raises for newly hired employees and a path to full-time work for temporary workers. Workers kept their top-notch health insurance, with workers picking up only a 3% of the cost.
In exchange, GM locked down significant cost savings because it was able to close three underused factories that made cars and transmissions. The company is closing factories in Lordstown, Ohio; Warren, Michigan; and another near Baltimore.