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Strike costs GM $3 bn in profit

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Strike costs GM $3 bn in profit

Strike costs GM $3 bn in profit

The 40-day labor strike cost GM around $3 billion in profit this year, pushing the automaker to slash its earnings forecast.

But as Fred Katayama reports, shares rose on its sales gain in the U.S..


Strike costs GM $3 bn in profit

The 40-day labor strike made a big dent in GM's bottom line.

The automaker said the walkout that virtually halted all North American operations would cost it around $3 billion in profits this year.

As a result, General Motors is slashing its earnings forecast for the full year.

Last Friday, union members made peace, ratifying a new four-year labor deal that wrung higher pay and other benefits from GM.

The automaker's CFO described the strike as a "one-time impact." GM shares rose sharply Tuesday.

Investors applauded the company's robust 6% sales gain in the United States.

Its highly profitable pick-up trucks, sport utilities and crossovers drove the top line higher.

Profit fell, but it STILL crushed analysts' expectations.

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