GM shares rise 3.8% in pre-market after automaker posted less-than-expected loss

General Motors Co. shares GM,
+ 2.45%
It rose 3.8% in premarket trading on Wednesday, after the automaker posted a lower-than-expected loss for the second quarter and sales that exceeded estimates. The company said it had a net loss of $ 758 million, or 56 cents a share, in the quarter, after earnings of $ 2.418 billion, or $ 1.66 a share, in the same period last year. The company’s adjusted loss per share was 50 cents, before the loss of $ 1.77 per consensus share from FactSet analysts. Sales fell 53% to $ 16.8 billion, but were ahead of the FactSet consensus of $ 16.2 billion. “Clearly, the second quarter was challenging, but we achieved an EBIT adjustment close to balance in North America, despite losing 8 of 13 weeks of production,” Chief Financial Officer Dhivya Suryadevara said in a statement. “These results illustrate the resilience and profit power of the business as we make the critical investments necessary for our future.” To combat the effects of the pandemic, the company cut costs through austerity measures, cut advertising spending, deferred compensation, and laid off employees. The company ended the quarter with $ 30.6 billion in automotive liquidity. Shares have fallen 28% in the year to date, while the S&P 500 SPX,
It has fallen 0.4%.