GM's strong Q3 results ease investor fears of slowdown

Investors cheered a solid third quarter at General Motors Co (US.GM) as the automaker's performance and confidence tamped down growing fears of a global recession. GM shares jumped more than 5% in premarket trading on Tuesday as the company's strong North American truck sales and prices drove a higher quarterly profit that beat analysts' estimates.

GM reaffirmed its guidance for full-year net income of $9.6 billion to $11.2 billion, and full-year diluted earnings per share of $5.76 to $6.76.

Diluted earnings per share in the third quarter of $2.25 topped estimates for $1.88.The automaker reported net income of $3.3 billion, compared with $2.4 billion a year earlier. Revenue jumped to $41.9 billion, from $26.8 billion a year ago.

The company said 90% of its operating profit came from North America, where it earned $3.9 billion mostly from trucks and SUVs. GM boosted prices on vehicles sold in North America by an average of $2,678 per vehicle.