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General Motors Reports Q3 Results; Shares Rise Sharply (GM)

Detroit, Michigan-based General Motors Company (NYSE: GM), U.S.’s largest automaker, today reported results for the third quarter ended Sep 30, 2012.

GM’s consolidated revenue for the quarter increased by 2% to $37,576 million from $36,719 million reported for the same period in the previous year. Operating income for the quarter decreased by 11% to $1,603 million from that of $1,806 million reported for the same period in the previous year. Net income attributable to common stockholders for the quarter decreased 14% to $1,476 million from $1,726 million reported in the third quarter of 2011.

GM sold 2.28 million vehicles in the third quarter of 2012, which was 2% higher than the vehicles sold in the same period in the previous year. The production volume increased to 2.237 million from 2.22 million..

The 2% increase in total revenues reflected the impact of 2% increase in Automotive Sales and 31% increase from GM financial revenue. In spite of having good control over general, administrative and selling expenses, the company’s operating income reduced by 11% this quarter. This was mainly due to increased input cost, increase in GM financial operating expenses and $78 million worth of goodwill impairment charges.

The company’s market share in Automobile Segment reduced to 11.6% worldwide from 12.1% in the prior year. Its market share in the United States also reduced to 17.6% from 19.7%.

GM had positive earnings globally except in Europe. GM Europe (GME) reported an operating loss of $478 million, compared to $292 million reported in the prior year. The company has been facing losses in Europe market since 1999 and lost $17.3 billion so far since 1999.

As on 30th Sep 2012, GM had total assets of $155,456 million including $23,320 million worth of cash and its equivalents. Total liabilities were $112, 827 million, among which 51% were current. Total Stockholders’ equity was $42,629 million.

GM shares have risen sharply today as investors digested the company’s quarterly results. At last check, GM shares were trading 7.86% higher at $25.11, with volume down from its daily average of 9.04 million to 9.01 million.


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