GM Reports Loss
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General Motors Corp. on Wednesday reported a significant improvement in its third-quarter financial performance, amid continued signs that the auto maker’s North American business is recovering.
The world’s No. 1 auto maker in terms of production posted a loss of $115 million, or 20 cents a share, in the third quarter, compared with a loss of $1.66 billion, or $2.94 a share, in the year-earlier period. GM posted revenue of $48.82 billion, up from $47.18 billion a year ago, as its core automotive operations boosted revenue by more than $1 billion to $39.5 billion.
On an adjusted basis, excluding special items, the bottom line came in at $529 million, or 93 cents a share, nearly double the consensus estimate on Wall Street.
The numbers, which Chief Executive Richard Wagoner said indicate GM is headed in the right direction, give the company another boost in its effort to return to sustainable profitability. But the quality of earnings, long a concern among investors who see the auto sector as limited in its profit-making potential, remained a topic of concern.