General Motors posted a $1.7 billion net profit for the third quarter, as strength in China and North America was pulled down by losses in South American and European markets. The company's net income for the period July-September dropped 15 percent from the same period last year. This was the company's seventh straight quarterly profit since July 2009, when it emerged from bankruptcy.
Revenue increased 8 percent to $36.7 billion. According to GM CEO Dan Akerson, the company delivered "a solid quarter" due to their "leadership positions" in China and North America.
However, he added that "solid isn't good enough, even in a tough global economy." He further stated that their total results emphasize the task they have to do to leverage their scale and improve their margins even more everywhere they do business. In Europe, the company lost $292 million during the quarter after recording a net profit in the second quarter.
However, this loss was less than the $559 million that the company lost in the region during the third quarter of 2010. The company now does not anticipate to achieve breakeven in Europe for this year before restructuring charges, which had been its goal, the company's CFO Dan Ammann informed reporters today, stating that they "obviously have significant macroeconomic challenges to address" in the region.
Meanwhile, North American profits increased 3 percent from the year-earlier period to $2.2 billion. Also in the company's international division, including China, profits dropped by 29 percent to $365 million. Ammann mentioned that China earnings were up. However, unfavorable exchange rates in other markets curtailed profits.