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.

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.