A it prepares to launch a public stock offering, General Motors on Nov. 10 announced a $2 billion third quarter profit. "As demonstrated by our third consecutive quarter of profitability and positive cash flow, these results continue our significant progress," said Chris Liddell, CFO.
"GM expects to also report positive EBIT (earnings before interest and taxes) for the fourth quarter, albeit at a significantly lower run rate than each of the first three quarters, and profitable year-end results for calendar year 2010," the automaker said.
The solid growth brings GM's profits to $4.8 billion for the first nine months of the year after three straight quarters in the black.
"GM sales this year show advancement from the company due to a stronger product lineup while improved earnings demonstrate the progress made through lower manufacturing costs and higher product margins," said Jesse Toprak, an analyst with TrueCar.com. "There is still room for improvement as transaction prices remained flat and fleet sales have risen slightly."
GM said on Nov. 11 that it generated $34.1 billion in revenues in the third quarter and posted net cash flow from operating activities of $2.6 billion.
GM's once-troubled North American unit had EBIT of $2.1 billion in the third quarter, up from $1.6 billion in the second quarter.
GM Europe posted $600 millionloss before interest and taxes, down from a $200 million loss in the second quarter.
GM International Operations posted EBIT of $600 million, down from $700 million in the second quarter.
Copyright Agence France-Presse, 2010