Detroit-based GM reported net income of $1.86 a share, excluding special items, topping estimates of $1.52 a share, on revenue that rose by 11% to $42.4 billion. The company also said it now expects to report adjusted Ebitda of $5.50 to $6 share in 2016, up from previous guidance for full-year earnings of between $5.25 and $5.75 a share.
"This was an outstanding quarter for GM," Chairwoman and CEO Mary Barra said in a statement. "Our results were generated by strong retail sales in the U.S., record sales in China and a continued emphasis on improving the performance of our operations worldwide. We'll continue to focus on driving profitable growth and leveraging our technical expertise to lead in the future of personal mobility."
About 90% of pretax profit at GM came from North America, where a continuing replacement cycle coupled with demand for higher-margin trucks and sport-utility vehicles benefited the bottom line. North American profit margins hit 12.1% in the quarter, up from 10.5% in the same period a year prior.
In Europe, which has long been a laggard for automakers, GM reported its first quarterly profit since 2011, earning $100 million compared to break-even in the same three months of 2015. But the company warned that the strong dollar, coupled with economic uncertainty following the United Kingdom's vote to leave the European Union, could cut European results by upwards of $400 million in the second half of 2016.
Shares of GM jumped by more than 5% in premarket trading.