Mexican Media Brands
GM Swings to a $2.5 Billion Profit
General Motors Co. recovered from a $3 billion net loss in last year’s third quarter—due to the sale of its Opel unit—with a net profit of $2.5 billion in July-September.
#economics
Share
General Motors Co. recovered from a $3 billion net loss in last year’s third quarter—due to the sale of its Opel unit—with a net profit of $2.5 billion in July-September.
Revenue for the period grew 6% to $35.8 billion, as worldwide unit wholesales to dealers and distributors advanced 5% to 1.13 million cars and trucks. Retail deliveries from continuing operations fell 12% to 1.98 million vehicles, largely because of a deliberate effort to bolster the bottom line by reducing sales incentives.
Unit sales for the period fell 10% in North America and China. GM’s global market share dropped one percentage point to 10.8%.
GM’s adjusted earnings before interest and taxes rose to a third-quarter record $3.2 billion from $2.5 billion last year. EBIT shrank in the period last year as GM deliberately pushed to reduce dealer inventories in North America.
The company says booming truck and SUV sales resulted in a record-high average retail selling prices that hiked its quarterly operating margin in North America to 10.2%. Adjusted EBIT in the region jumped by one-third to $2.8 billion. EBIT overseas plunged 64% to $139 million.
GM Financial reports that its revenue rose 9% to $3.5 billion. The unit’s adjusted EBIT climbed by two-thirds to a third-quarter record $500 million.
RELATED CONTENT
-
Inside Ford
On this edition of “Autoline After Hours” Joann Muller, Detroit bureau chief for Forbes, provides insights into what she’s learned about Ford, insights that are amplified on the show by our other panelists, Stephanie Brinley, principal analyst at IHS Markit who specializes in the auto industry, and Todd Lassa, Detroit Bureau Chief for Automobile.
-
On Global EV Sales, Lean and the Supply Chain & Dealing With Snow
The distribution of EVs and potential implications, why lean still matters even with supply chain issues, where there are the most industrial robots, a potential coming shortage that isn’t a microprocessor, mapping tech and obscured signs, and a look at the future
-
On Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.