BackGM posts $2 bn profit as production picks up
GM posts $2 bn profit as production picks up
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Detroit: General Motors Co posted a $2 billion third quarter profit on Wednesday amid increased production and planning for an IPO that could be completed later this month.
GM’s profit met the expected range it outlined last week when it said it expected a full-year profit, which would be its first since 2004, and released details of its plans for an offering of common and preferred shares.
The automaker reported earnings per share of $1.20.
It posted revenue of $34.1 billion in the third quarter. GM emerged from its government-funded bankruptcy in July 2009, making year-ago comparisons less relevant.
GM’s profit topped US No. 2 rival Ford Motor Co’s $1.7 billion third-quarter profit, and Chrysler’s $84 million net loss for the quarter.
GM expects earnings before interest and tax to be significantly lower in the fourth quarter than it was through the first three quarters due to vehicle introduction costs and spending for future products among other expenses.
The US automaker reported losses totaling about $88 billion from 2005 to 2009, when it fell into bankruptcy.
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