GM announced today that it posted a third quarter net income of $1.96 billion on revenues of $34.06 billion. The bad news is that the American manufacturer expects its profitability to fall in the fourth quarter due to the higher new-product development and vehicle-launch costs for cars such as Chevrolet Volt and Cruze.
Comparing with the third quarter results showed in 2009, the numbers are impressive, as GM posted last year a $1.15 billion loss after going through a U.S.-funded overhaul in bankruptcy court.
“The results of the third quarter clearly point to the amount of progress GM has made,” CEO Dan Akerson said in a conference call.
In addition, GM announced that it third quarter results topped Ford Motor Co's $1.7 billion third-quarter profit.
Ford exited ts U.S.-steered bankruptcy a month before GM, and had a third-quarter operating profit of $239 million and a net loss of $84 million. GM’s sales in October were up 6 percent to 1.8 million units.
“As demonstrated by our third consecutive quarter of profitability and positive cash flow, these results continue our significant progress,” said Chris Liddell, vice chairman and chief financial officer. [via autonews - sub. required]