 "Ignition-switch lawsuit costs dent GM earnings")
General Motors reported slightly lower third-quarter profits today as the costs of ignition-switch litigation settlements offset strong profits in North America.
The biggest US automaker reported net income of $1.4 billion, 7.6 per cent below the year-ago level. Revenues fell 1.0 per cent to $38.8 billion.
But results were lifted by a 34 per cent rise in pre-tax North American earnings to $3.3 billion. US auto sales in September soared to their fastest pace in more than a decade.
GM's performance in other regions was far more modest. The auto giant reported slightly higher pre-tax profits in its international operations business, which includes China.
GM's car sales in China were 814,000, down 4.2 per cent from the year-ago period. On the positive side, GM's profit margin in its China ventures rose to 9.8 per cent from 9.6 per cent.
GM's European business reported a loss of $231 million, smaller than the $387 million loss in the year-ago period. The loss in South America was $217 million, compared with a $32 million loss in the 2014 quarter.
"These results reflect our work to capitalise on our strengths in the US and China, while taking decisive, proactive steps to mitigate challenges elsewhere," said GM chief executive Mary Barra.
Results were weighed down by GM's $900 million penalty to settle a criminal US probe into its failure to recall cars with faulty ignitions linked to more than 100 fatalities. GM also spent $600 million in civil settlements.
Results translated into $1.50 per share, excluding the charges, much above the $1.19 per share forecast by analysts. GM shares rose 4.4 per cent in pre-market trade.
The biggest US automaker reported net income of $1.4 billion, 7.6 per cent below the year-ago level. Revenues fell 1.0 per cent to $38.8 billion.
But results were lifted by a 34 per cent rise in pre-tax North American earnings to $3.3 billion. US auto sales in September soared to their fastest pace in more than a decade.
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GM sold 794,000 cars in the United States during the quarter, up 9.2 per cent from the same period of 2014.
GM's performance in other regions was far more modest. The auto giant reported slightly higher pre-tax profits in its international operations business, which includes China.
GM's car sales in China were 814,000, down 4.2 per cent from the year-ago period. On the positive side, GM's profit margin in its China ventures rose to 9.8 per cent from 9.6 per cent.
GM's European business reported a loss of $231 million, smaller than the $387 million loss in the year-ago period. The loss in South America was $217 million, compared with a $32 million loss in the 2014 quarter.
"These results reflect our work to capitalise on our strengths in the US and China, while taking decisive, proactive steps to mitigate challenges elsewhere," said GM chief executive Mary Barra.
Results were weighed down by GM's $900 million penalty to settle a criminal US probe into its failure to recall cars with faulty ignitions linked to more than 100 fatalities. GM also spent $600 million in civil settlements.
Results translated into $1.50 per share, excluding the charges, much above the $1.19 per share forecast by analysts. GM shares rose 4.4 per cent in pre-market trade.