GM "demonstrated...significant progress," said CFO Chris Liddell.
Landing right in the middle of its forecasted range, General Motors is reporting a third-quarter profit of $2.0 billion, and the maker is predicting a full-year profit, as well, although the pace is slowing down. It would be the first full year in the black since 2004.
The third-quarter net, which works out to $1.20 a share after a three-for-one split, marks the third consecutive quarter in the row GM has run in the black, a significant turnaround from its situation prior to last year’s bankruptcy – all the more so considering current U.S. car sales remain at deep recessionary levels.
“As demonstrated by our third consecutive quarter of profitability and positive cash flow, these results continue our significant progress,” said Chris Liddell, vice chairman and chief financial officer, in a prepared release.
Last week, when announcing details of its long-awaited IPO, GM had indicated it would post a roughly $2 billion profit for the quarter, with an upside of $2.1 billion, so there are few surprises in this morning’s announcement. Nonetheless, confirmation of the forecast will help GM officials, including Liddell and his boss, CEO Dan Akerson, as they head out to win over potential investors who will be asked to support the anticipated $13 billion General Motors IPO.
Your Winning News Source!
The maker has indicated it will seek between $26 and $29 per share during the initial public offering. A specific date has yet to be announced, but industry insiders believe the stock sale will occur on November 18th.
As part of its bankruptcy-led restructuring, GM aimed to be able to break even at an annual North American sales rate of around 10.5 million. While the industry has yet to post a significant recovery, the third quarter saw a modest upturn into the low 11-million range. That generated revenues of $34.1 billion GM reported.