GM reports third quarter net income of $1.4 bn
24 October 2014
General Motors Co on Thursday reported third quarter net income of $1.4 billion, or $0.81 per diluted share, despite a net loss from special items that reduced net income by $0.3 billion, or ($0.16) per diluted share.
GM's net income attributable to common stockholders in the third quarter of 2013 was $0.7 billion, or $0.45 per diluted share, which included a net loss from special items that reduced net income attributable to common stockholders by $0.9 billion, or ($0.51) per diluted share.
Special items were primarily related to flood damage sustained at the GM Technical Center in Michigan and long-lived asset impairments in the troubled Russian car market, GM stated in a release.
The company appeared to benefit from improving sales of newer models in North America and China.
GM said its adjusted earnings before interest and tax (EBIT) for the July-September 2014 quarter stood at $2.3 billion, which included the impact of $0.2 billion in restructuring costs for actions taken in GM Europe.
Against this, the company recorded adjusted EBIT of $2.6 billion, which included $0.1 billion in restructuring costs in the third quarter of 2013.
''Strong global sales and growing margins in North America and China helped GM deliver very solid third quarter results,'' said GM CEO Mary Barra. ''Despite industry challenges in Russia and South America, our earnings were on plan as we continue to execute our customer-focused strategy.''
Net revenue for the third quarter of 2014 stood at $39.3 billion, a slight improvement from the $39.0 billion in the third quarter of 2013.
For the first nine months of 2014, GM said, its revenue rose to $116.3 billion from $114.9 billion in the same period a year ago.
''Strong performance in North America, where we achieved a 9.5 per cent margin, anchored our overall results,'' said Chuck Stevens, GM executive vice president and chief financial officer. ''We remain focused on flawlessly launching key vehicles globally in the coming months, while delivering a positive experience for our customers.''
In the fourth quarter, GM will be making new launches that include the recently introduced GMC Canyon and Chevrolet Colorado mid-sized pick-ups in the US, the Cadillac ATS-L, Buick Envision and Chevrolet Cruze in China, and the Opel Corsa and ADAM ROCKS in Europe.
The company also introduced 4G LTE high-speed mobile broadband in 33 vehicles this year, more than the rest of the industry combined, and plans to introduce it on more than a dozen additional models by the end of 2015.
GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Opel, Vauxhall and Wuling brands.
General Motors Co operates manufacturing plants in 30 countries, and the company has leadership positions in the world's largest and fastest-growing automotive markets.