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Wed October 31, 2012
GM share price up on better-than-expected earnings report
GM shares were up Wednesday on the back of a stronger-than-expected third-quarter earnings report.
The automaker reported a net income of $1.48 billion, down just 14.5 percent from last year despite major losses in Europe.
As a result, GM stock had increased by 9.66 percent to $25.53 a share by 2:20 p.m.
Melissa Burden with the Detroit News has more:
"GM had a solid quarter because customers around the world love our new vehicles, and we're also seeing green shoots take hold on tough issues like complexity reduction, pensions and Europe," Chairman and CEO Dan Akerson said in a statement.
"We are going to keep playing offense with growth products like the Chevrolet Onix, Opel Mokka and Cadillac ATS, and continue to systematically address business risks."
The Detroit company, which marked 11 consecutive quarterly profits, posted pretax earnings of $1.82 billion in North America, down from $2.2 billion in the quarter a year ago. GM's International Operations earned $689 million pretax, up from $365 million in the period a year ago, while GM South America earned $114 million pretax, up from a loss of $44 million. GM Financial also made $200 million pretax profit, up from $178 million.
With the exception of Europe, GM was profitable in all five of its units, the AP reports.
The company has worked hard to lower costs in Europe, cutting nearly 2,300 jobs, and expects to be profitable on the continent by mid-decade.
- Jordan Wyant, Michigan Radio Newsroom