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Driven by U.S. Demand, GM Nets $1.4 billion in Q3

Earnings before taxes hit record. But numbers could cause problems.

by on Oct.21, 2015

GM's Detroit headquarters, the Renaissance Center.

Surging demand in its home market helped General Motors deliver a strong third-quarter profit, offsetting the impact of weakening sales in China.

The largest of the Detroit automakers said Wednesday morning that it earned $1.4 billion in net income, or $0.84 a share. That compared with $1.4 billion, or $0.81 a share a year ago. On an EBIT, or earnings before interest and tax, basis GM had an adjusted profit of $3.1 billion, and an adjusted profit margin of 8.0% percent.

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The strong numbers could generate new interest on Wall Street, at least GM officials are hoping. The maker’s stock has languished in recent months, around the same price set during its November 2010 IPO. But there could be a downside. The strong third quarter could motivate bargainers for the United Auto Workers Union who are trying to hammer out a new four-year contract with GM.


GM Net Income Down – But Earnings Up Before Taxes

Maker increases projected losses in Europe.

by on Oct.31, 2012

GM continues to struggle in Europe, even as the home market rebounds.

General Motors reports it earned $1.5 billion during the third quarter of 2012, a 14.5% decline in net profits, though the maker’s earnings before interest and taxes, or EBIT, rose nearly 5%.

The maker’s latest quarter reflected a generally strong performance in a U.S. market that has seen a sharp upturn in car sales this year that has defied skeptics’ forecasts. And the maker did well in Asia and most other international operations. But GM was hammered by the collapse of the European automotive market and the ongoing problems at its German-based Opel subsidiary.

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“GM had a solid quarter because customers around the world love our new vehicles and we’re also seeing green shoots take hold on tough issues like complexity reduction, pensions and Europe,” said Chairman and CEO Dan Akerson. “We are going to keep playing offense with growth products like the Chevrolet Onix, Opel Mokka and Cadillac ATS and continue to systematically address business risks.”

Despite the decline in net earnings, which worked out to 93 cents a share, the maker significantly beat Wall Street expectations.  Industry analysts had collectively anticipated the maker would come in at around 60 cents a share. A year ago, net income was $1.7 billion, or $1.03 a share.