iNVEZZ.com, Wednesday, October 30th: Shares of General Motors Co. (NYSE:GM) today rose by about 3 percent at the opening bell in New York after the US auto maker posted better-than-expected third quarter results thanks to improved margins in its core North American market and a lower-than-forecast loss in Europe.
Third-quarter net income attributable to common shareholders fell by 53 percent to $698 million (£434 million) as improved operating performance was offset by a one-time loss related to the repurchase of preferred stock and higher tax expenses. On a per share basis, earnings fell to 45 cents from 89 cents in the third quarter of 2012. Excluding one-time items, GM earned 96 cents per share, 2 cents more than analysts polled by Reuters and FactSet had predicted and 3 cents more than analysts polled by Bloomberg had expected.
GM’s third-quarter revenue increased by nearly four percent to $39 billion, just short of Wall Street’s estimate of $39.4 billion. “During the quarter strong demand for new vehicles like the Cadillac ATS, Chevrolet Onix and the all-new Chevrolet Silverado helped boost our top-line,” Dan Ammann, GM executive vice president and CFO said in a statement. Chairman and CEO Dan Akerson added that the strength of the Chevrolet brand has helped boost GM’s global market share during the quarter.
**Strong operating profit growth**
!m[Core North American market shows improved performance, European losses cut in half](/uploads/story/6449/thumbs/pic1_inline.jpg)
GM’s adjusted earnings before interest and tax (EBIT) for the third quarter rose 15 percent year on year to $2.6 billion mainly on the back of a 28-percent growth in North American earnings to $2.2 billion. The auto maker cut its operating loss in Europe to $214 million from $487 million in the third quarter of 2012, suggesting that a turnaround on the crisis-hit continent is on track. The company has previously said that a profit in Europe is not likely before 2015. Its South American business also reported improved performance with a 79 percent year-on-year increase in EBIT to $284 million. On the negative side, GM’s rapidly growing International Operations, which cover China and the rest of the world, reported a 61 percent drop in operating profit to $299 million. The operating profit of GM Financial, the auto maker’s in-house financing arm that provides leasing programmes and low-cost loans to GM customers and dealers, rose 20 percent to $239 million.
**As of 13.35 UTC buy GM shares at $37.13.**
**As of 13.35 UTC sell GM shares at $37.10.**