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GM’s Operating Profit Surges 37% as Sales Slip
General Motors Co.’s operating income in July-September of 2015 jumped 37% to an any-quarter record $3.1 billion.
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General Motors Co.’s operating income in July-September of 2015 jumped 37% to an any-quarter record $3.1 billion.
Consolidated net income dropped 8% to 1.4 billion, cut by $1.5 billion in special charges related to last year’s ignition switch recall and subsequent settlements for victims. Unfavorable exchange rates caused net revenue in the third quarter to slip 1% to $38.8 billion.
GM’s retail sales for the period totaled 2.37 million units worldwide compared with 2.45 million in July-September 2014. A 5% gain to 931,000 units in North America was more than offset by a 5% decline to 1 million units in Asia, the Middle East, Africa and South America.
The company’s third-quarter market share shrank by 0.2 points to 17.1% in the U.S., 6.3% in Europe and 10.2% in Asia-Pacific/Middle East/Africa. It plunged to 14.1% from 16.4% in South America. GM reports its share of the global automotive market was 11.2% in July-September compared with 11.6% in the same period last year.
GM’s adjusted earnings before interest and taxes surged 32% to a record $3.3 billion in North America. In South America, the company’s EBIT loss deepened to $217 million from $32 million. Losses in Europe shrank 40% to $231 million. Quarterly pretax earnings for the rest of the world, including China, gained 4% to $269 million.
Operating profits for GM Financial climbed 13% to $231 million in the third quarter.
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