Profits down from last year, beats expectations; losses continue in Europe
San Francisco, CA -- (SBWIRE) -- 01/07/2013 -- General Motors’ Q3 earnings of $1.48 billion, or 89 cents per share, were driven by a strong performance in North America, which more than made up for continuing losses in its European operations.
Excluding special items, per-share earnings were 93 cents. Although down 15% from the $1.7 billion, or $1.03 per share, in profits GM reported a year earlier, the numbers exceeded analysts’ expectations. Net sales inched up more than 2%, to $37.6 billion compared with $36.7 billion last year, boosted by both increased volume and higher prices. That was around $2 billion more than Wall Street had anticipated.
GM’s total vehicle sales were 2.28 million units, a gain of 1.5% over the 2.25 million vehicles sold in the same period last year. Every division except Europe saw increased sales.
In its North American division, responsible for about 60% of company revenues, vehicle sale rose 2% and revenues jumped 7%, to $23.3 billion. Thus far this year, GM’s U.S. sales are up about 3.5%, and its average transaction price was 0.6% higher.
For Q3, North American revenues rose 7% to $23.3 billion, but adjusted earning before taxes or interest fell 17% to $1.82 billion. The company pointed to lower operating margins (7.8% versus 10% last year) due to higher materials costs and larger incentives offered by GM dealers.
Despite its increased U.S. sales volume, GM continues to lose market share. It now holds about 18% of the U.S. market, compared with over 20% last year, as Toyota and other Japanese carmakers recover from their earthquake and tsunami and floods in Thailand.
In Europe, the only one of GM’s five division reporting a loss, GM’s losses deepened to t $478 million for the quarter, compared with $292 million a year earlier. The company, which has lost money of its European operations, every year since 2000, estimates its European losses this year will total $1.5-$1.8 billion.
In the quarter, Opel production was off 27%, as the Continent sees its worst year for new car sales in nearly 20 years. GM says it expects slightly better European results next year and hopes to regain profitability by “mid-decade.”
GM’s profits in its international division, which includes Asia/Pacific, Eastern Europe, the Middle East and Africa, nearly doubled, to $689 million, up from $365 million in Q3 2011. China accounts for the largest part of the division’s sales, and equity income from GM’s joint ventures there rose 11%, to $420 million. GM South America saw adjusted earnings of $114 million, reversing an adjusted loss of $44 million last year.
About Car Insurance 60
Car Insurance 60 (http://www.carinsurance60.com) lets online auto insurance shoppers compare quotes from national and top-rated insurance firms. Visit the website for cheap full coverage car insurance, car insurance with full coverage, cheap car insurance for women and best car insurance for women drivers.
Copyright © 2005-2013 - SBWire, The Small Business Newswire - All Rights Reserved - Important Disclaimer
Contact Us: 888-4-SBWIRE (US) - 920-321-1250 (International)