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GM Net Goes $3b Into the Red for 3rd Quarter – But Still Beats Expectations

Bottom line hit hard by sale of Opel/Vauxhall subsidiary.

by on Oct.24, 2017

Despite a weak third quarter, analysts are showing appreciation for CEO Barra's strategy.

(This story was corrected to reflect the Q3 2017 EBIT-adjusted income for GM and the Wall Street forecast for the quarter.)

General Motors Co. posted a $2.98 billion loss for the third quarter of 2017, its net income hammered by a $5.4 billion charge resulting from the sale of its long-troubled European subsidiary Opel/Vauxhall.

Before taxes, GM actually earned $2.5 billion, a 32% decline from the $3.7 billion EBIT-adjusted number it reported during the July-September quarter in 2016. But Detroit’s automaker nonetheless managed to beat expectations, delivering per share earnings of $1.32 after factoring for one-time charges. Wall Street analysts had forecast earnings of $1.11 per share.

Financial News!

Excluding the hefty cost of exiting Europe, “The way to really think about the business is obviously continuing operations and the core business,” said GM Chief Financial Officer Chuck Stevens. Significantly, all of GM’s other operations – including North America, South America, China and other parts of the world — were profitable for the first time since the fourth quarter of 2014.

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