NEW YORK—General Motors Co., the nation’s biggest automaker, on Wednesday reported a $2 billion third-quarter profit, the third consecutive profit in a row for the once battered automaker.
For the Detroit-based General Motors (GM), the positive earnings were largely due to exceptional sales in the North American market, according to the company. Production from its U.S. factories rose 33 percent, and while its international operations remained relatively flat, sales in China were up 13 percent in the quarter, according to its third-quarter financials.
GM is selling more cars this quarter than last—even though it has shed some of its product lines—and overall fewer vehicles than prior to the financial crisis, but a leaner cost structure and high car prices have been a boon for the company’s bottom line.
“As demonstrated by our third consecutive quarter of profitability and positive cash flow, these results continue our significant progress,” said Chris Liddell, chief financial officer of GM, in a statement.
The company advanced a long way since its government-assisted bankruptcy last summer to shed onerous debt, and is preparing for an initial public offering to lower its 61 percent government ownership.
Next week, GM is poised to sell roughly $10 billion worth of stock in an initial public offering (IPO) of 365 million shares priced at between $26 and $29 per share. It should reduce the U.S. government’s stake in the company down to around 40 percent, according to GM’s Securities and Exchange Commission filing.
The current quarter should also be positive for GM. Most automakers reported higher sales in October, including GM, Ford Motor Co., Chrysler Group, and Nissan. Japanese rival Toyota saw its sales decline slightly.
For the Detroit-based General Motors (GM), the positive earnings were largely due to exceptional sales in the North American market, according to the company. Production from its U.S. factories rose 33 percent, and while its international operations remained relatively flat, sales in China were up 13 percent in the quarter, according to its third-quarter financials.
GM is selling more cars this quarter than last—even though it has shed some of its product lines—and overall fewer vehicles than prior to the financial crisis, but a leaner cost structure and high car prices have been a boon for the company’s bottom line.
“As demonstrated by our third consecutive quarter of profitability and positive cash flow, these results continue our significant progress,” said Chris Liddell, chief financial officer of GM, in a statement.
The company advanced a long way since its government-assisted bankruptcy last summer to shed onerous debt, and is preparing for an initial public offering to lower its 61 percent government ownership.
Next week, GM is poised to sell roughly $10 billion worth of stock in an initial public offering (IPO) of 365 million shares priced at between $26 and $29 per share. It should reduce the U.S. government’s stake in the company down to around 40 percent, according to GM’s Securities and Exchange Commission filing.
The current quarter should also be positive for GM. Most automakers reported higher sales in October, including GM, Ford Motor Co., Chrysler Group, and Nissan. Japanese rival Toyota saw its sales decline slightly.
