 announced third quarter performance that, whilst taking huge losses and revenue dropping, was well above analyst expectations){kind=link}
General Motors (NYSE:GM) announced third quarter performance that, whilst taking huge losses and revenue dropping, was well above analyst expectations.
The US motor company reported revenue of $33.6 billion, down 13.5% on the previous year, as well as amounting losses of $3 billion for Q3.
GM explain that losses were “driven primarily by a charge of $5.4 billion resulting from the sale of Opel/Vauxhall”. These losses were incurred due to “unrealizable deferred tax assets,… pensions and other net charges for working capital adjustments and costs to support the separation of operations”.
The drop in revenue comes as part of a planned slowdown of operations in North America. GM planned this in order to reduce their high level of inventory, which they managed to achieve by 16%.
GM’s core business appears to remain strong despite the losses. If one-time losses are discounted – i.e. those from the sale of Opel/Vauxhall – earnings would be $2.3 billion. As well as this new area of growth are appearing for the Chevrolet producer.
Deliveries of vehicles to China have risen 12.3%, as well as rising 17.6% in South America also. This is compared to the industry growth of 16.1%.
The results have been far stronger than analysts polled by the Wall Street Journal expected. GM’s operating income earnings per share of $1.32 compared to analyst forecasts of $1.11.
Having outperformed expectations, GM has seen their share price tick up by 2.21%, at the time of writing, to $46.15. GM stock price has soared 17% over the past month.