Without special items and increased tax expenses, earnings were $1.6 billion.
A year ago, GM reported earnings of $1.5 billion on revenue of $37.6 billion.
CHRYSLER EARNINGS: Q3 net income up 22%
Wall Street seemed willing to ignore the "specials," and applaud the results. "GM reported strong 3Q results," J.P. Morgan auto industry analyst Ryan Brinkman said in a note to clients shortly after the automaker announced results.
Investors agreed, and GM shares jumped more than $1, to $37-plus, just after the opening bell at the stock exchange.
Without the special charges GM earned 96 cents a share, up from 89 cents last year and more than the Wall Street consensus prediction of 93 cents. .
GM identified the key special item as a loss of $800 million "related to the repurchase of 120 million shares of Preferred Series A Stock. It also cited "incremental tax expense" and "goodwill impairment" write-downs on international operations.
In North America, where auto sales are strong, GM reported an operating profit of $2.2 billion, up 29% from $1.7 billion a year ago.
Troublesome European operations lost less than a year ago: $214 million, an improvement over a $487 million loss a year ago.
GM notes that the third quarter was its 15th consecutive profitable quarter.
The first nine months of the year, GM has earned $2.9 billion, vs. $4 billion a year ago.
Dan Ammann, GM's CFO, said in a TV interview with CNBC that the period was "a strong quarter overall," and said a revenue increase in Europe was among "encouraging signs" that GM will hit its forecast of breaking even there by mid-decade.
Ford Motor reported Oct. 24 that it had net income for the third quarter of $1.3 billion after special charges for European restructuring and a switch to lump-sum retirement payou! ts to some U.S. white-collar employees.
GM notes that it's selling more vehicles under its four brands than it did via eight brands immediately before it went through Chapter 11 bankruptcy reorganization in the summer of 2009.
"In North America, General Motors has seen its Buick and Cadillac brands continue to post double-digit sales increases, while its mass-market Chevrolet brand has lagged the market's overall growth," says Jack Nerad, executive editorial director and market analyst for Kelley Blue Book.
Chevy's sub-par showing "indicates a bit of weakness, but we believe the well-reviewed new Silverado and Impala plus a rejuvenated Malibu will improve Chevy's fortunes," he says. Pickups such as Silverado are among the highest-profit models an automaker sells.
Despite new models, usually a key to higher prices and higher profits, the average transaction price for a new GM vehicle in the third quarter was up only 1% from a year ago, to $34,566, Kelley reports.
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