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

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