GM net income drops 53% to $698mil in third quarter 2013

Article by Anita Panait, on November 2, 2013

General Motors posted a 53-percent drop in net income in the third quarter of 2013 to $698 million, no thanks to one-time expenses like the $800 million used to repurchase 120 million preferred shares from the UAW's health-care trust during the period. GM posted a 15-percent surge in earnings before interest and taxes (EBIT) to $2.64 billion.

According the carmaker, its bottom line was helped by rising production of trucks, which is considered as high-margin products, as well better pricing in both North and South America. The carmaker posted a 4-percent jump in revenues to $38.98 billion.

The company’s profit increase in North America is more than enough to offset losses in Europe, which are continuing to shrink. GM’s losses in Europe slipped $214 million in the third quarter of 2013, from $487 million in the same period in 2012.

GM posted $499 million in losses in Europe in the first nine months of 2013, from $1.18 billion in the same period in 2012.  GM Europe logged $4.86 billion in revenue in the third quarter of 2013, the highest year-over-year quarterly result in two years.

GM chief executive Dan Akerson remarked that GM Europe “managed to stabilize key metrics like volume and pricing in an extremely challenging market." The carmaker also logged a 28-percent hike in pretax income in North America to $2.2 billion, excluding one-time items. According to GM Chief Financial Officer Dan Ammann, the results were due to stronger pricing from recent vehicle launches, like the 2014 full-sized pickups in June. [source: GM]

Topics: gm, income

If you liked the article, share on:

Comments

Recommended

One of the executives at Volkswagen tagged in the so-called Dieselgate scandal has pleaded not guilty to a list of allegations surrounding the carmaker’s actions to cheat emissions regulations in...
by - February 27, 2017
When the Crown De Luxe saloon was first released in 1972, it was at that time the most lavish Toyota model available to British customers. Both unusual and exclusive, one...
by - February 27, 2017
The ride-sharing fleet of sharing Lyft Inc. will soon include thousands of specially fitted self-driving Chevrolet Bolt electric vehicles, courtesy of General Motors. If plans push through, Lyft’s clients would...
by - February 27, 2017
J.D. Power has officially released the 2017 Vehicle Dependability Study, an annual list of the most dependable brands in the auto industry. Once again coming on top is Lexus, the...
by - February 26, 2017
Citroen revealed that its entry to the Chinese market is moving forward with the planned release of the new generation C5. While still on sale on this part of the...
by - February 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries