General Motors has announced that their profit has dropped 14.5% in Q3. Net income is down $1.5 billion (89 cents per share) for the quarter that had ended in September. GM’s revenue grew 2.5% to $37.6 billion. GM estimated that it would lose between $1.5 billion to $1.8 billion for the full year in Europe.
?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,? stated GM CEO Dan Akerson in a statement. ?While we still have a lot of work to do, especially in Europe, it is encouraging to see our results begin to reflect the discipline we are bringing to bear on the overall business.?
GM reported an operating profit of $1.82 billion (17% decline). GM CFO Daniel Ammann said that the company is pleased with their performance in North America because “we have the oldest portfolio” of products compared to competitors. This will change in 2013 when the company will deliver critical products including the Chevrolet Silverado pickup truck. By the end of next year, around 70% of GM’s nameplates will be redesigned.
GM lost $478 million in Europe, which is slightly lower than Morgan Stanley’s estimate of around $508 million. GM’s profits rose 88.8% to $689 million in their International Operations unit, which includes the Chinese market. GM reported a loss of $44 million in South America to a profit of $114 million.
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