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GM Doubles Third-Quarter Net Income
General Motors Co. reports its net income in July-September doubled to a record $2.8 billion. Revenue rose 10% to $42.8 billion, marking the company’s best quarter since it emerged from bankruptcy seven years ago.
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General Motors Co. reports its net income in July-September doubled to a record $2.8 billion. Revenue rose 10% to $42.8 billion, marking the company’s best quarter since it emerged from bankruptcy seven years ago.
GM says its full-year earnings per share will be at the high end of its previous guidance of $5.50-$6.
Results were driven by North American operations, where adjusted EBIT rose 6% to a record $3.5 billion. Revenue for the unit grew 12% to $31.1 billion.
Net income attributable to North America totaled $3.5 billion in the third period. GM cut its net losses in Europe and South America 38% to $142 million and 44% to $121 million, respectively. Those losses were offset by International Operations, where income was flat.
GM says it won’t meet its goal of breaking even in Europe this year because of the negative impact of the U.K.’s vote to exit the European Union. The company expects Brexit to reduce its fourth-quarter earnings in the region by $300 million.
GM’s global vehicle sales advanced 5% to 1.58 million wholesale and retail units in the third quarter. Volume rose 10% to 1.03 million vehicles in North America, 8% to 153,000 in South America and 9% to a record 2.7 million in China. Sales declined 5% to 261,000 vehicles in Europe.
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