With the third quarter of 2013 wrapping up, General Motors has published its quarterly earnings, announcing a net income of $700 million, a significant drop from Q3 2012's $1.5 billion in net income. The drop is being blamed on a $900 million loss from "special items," $800 million of which was part of a 120-million share repurchase of preferred stock. GM also lost $500 million on tax expenses.

Despite the drop in income, net revenue was up $1.4 billion year-over-year, from $37.6 billion in Q3 of 2012 to $39 billion in Q3 2013. Earnings before interest and tax climbed to $2.6 billion from $2.3 billion. "We made gains in the third quarter as we improved our North American margins and increased our global share on the strength of our Chevrolet brand," Dan Akerson, GM's chairman and CEO, said.

Globally, GM reported a smaller drop in earnings before interest and tax tax in Europe, losing $300 million less than in the same period of 2012. South American EBIT was up $100 million from Q3 of 2012, to $300 million, while GM's International Operations saw a $500 million decline in third quarter EBIT, from $800 million to $300 million. Have a look below for the entire press release from GM.
Show full PR text
GM Reports Third Quarter Net Income of $0.7 Billion

EPS of $0.45 includes net loss from special items of $0.51 per share
EBIT-adjusted of $2.6 billion, up from $2.3 billion in the third quarter of 2012
DETROIT – General Motors Co. (NYSE: GM) today announced third quarter net income to common stockholders of $0.7 billion or $0.45 per fully diluted share, down from $1.5 billion or $0.89 per fully diluted share a year ago. Improvement in operating performance during the quarter was more than offset by a net loss from special items and incremental tax expense.

Net income to common includes a net loss from special items of $0.9 billion or $0.51 per fully diluted share, including $0.8 billion related to the repurchase of 120 million shares of Preferred Series A Stock. Results were also impacted by incremental tax expense of $0.5 billion or $0.29 per fully diluted share in the quarter compared to the third quarter of 2012.

Net revenue during the quarter was $39.0 billion compared to $37.6 billion in the third quarter of 2012. Earnings before interest and tax (EBIT) adjusted was $2.6 billion compared to $2.3 billion in the third quarter of 2012.

"We made gains in the third quarter as we improved our North American margins and increased our global share on the strength of our Chevrolet brand," said Dan Akerson, GM chairman and CEO. "Our efforts to build great cars and trucks and deliver solid financial results were recognized this quarter by Moody's investment grade rating."

GM Results Overview (in billions except for per share amounts)

Q3 2013 Q3 2012
Revenue $39.0 $37.6
Net income attributable to common stockholders $0.7 $1.5
Earnings per share (EPS) fully diluted $0.45 $0.89
Impact of special items on EPS fully diluted $(0.51) $(0.04)
EBIT-adjusted $2.6 $2.3
Automotive net cash flow from operating activities $3.3 $3.1
Adjusted automotive free cash flow $1.3 $1.2

Segment Results

GM North America reported EBIT-adjusted of $2.2 billion compared with $1.7 billion in the third quarter of 2012.
GM Europe reported EBIT-adjusted of $(0.2) billion compared with $(0.5) billion in the third quarter of 2012.
GM International Operations reported EBIT-adjusted of $0.3 billion compared with $0.8 billion in the third quarter of 2012.
GM South America reported EBIT-adjusted of $0.3 billion compared with EBIT-adjusted of $0.2 billion in the third quarter of 2012.
GM Financial earnings before tax was $0.2 billion for the quarter compared to $0.2 billion in the third quarter of 2012.
Cash Flow and Liquidity

For the quarter automotive cash flow from operating activities was $3.3 billion and adjusted automotive free cash flow was $1.3 billion. GM ended the quarter with very strong total automotive liquidity of $37.3 billion. Automotive cash and marketable securities was $26.8 billion compared with $24.2 billion for the second quarter of 2013.

"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," said Dan Ammann, GM executive vice president and CFO. "We also further strengthened our fortress balance sheet and reduced our cost of capital through our $4.5 billion refinancing of high cost obligations."

About General Motors Co.
General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company has leadership positions in the world's largest and fastest-growing automotive markets. GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Isuzu, Jiefang, Opel, Vauxhall and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at http://www.gm.com.


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    • 1 Second Ago
  • 49 Comments
      mapoftazifosho
      • 1 Year Ago
      $10 billion to avoid a complete meltdown of the US economy which would have cost us trillions...sounds like a good deal to me!
        Hampton
        • 1 Year Ago
        @mapoftazifosho
        ...or they could have gone into bankruptcy,trimmed the fat and restructured and come out with successful business model instead of a 10 billion dollar vote bank for union slackers
        eye.surgeon
        • 1 Year Ago
        @mapoftazifosho
        If by complete meltdown of the economy you mean a bunch of union guys lose their sweetheart contracts and inflated pensions, then yes. Complete meltdown averted.
        Topher.Mctopherton
        • 1 Year Ago
        @mapoftazifosho
        us economy meltdown ? crack much ? please enron tanked and took everything with them and were still here. Housing went 10x worse down the tubes and were still here... they should have gone to auction. I'm still pissed we bailed them or the housing firms out. **if your business is unfit... DIE.**
          Julius
          • 1 Year Ago
          @Topher.Mctopherton
          Two points: 1) Enron's collapse was much smaller - estimated to be about $75 Billion lost in 4 years. And as a holding company, the sales weren't individualized like buying a car is - most of its income was by investments. In 1999, Enron posted $44 Billion in income before the fraud ballooned it the next year. In any case, my post above estimated GM in sales alone generated $95 Billion in one year. 2) Housing is a fixed-asset loss - estimated to be about $4.5 Trillion in net worth lost. That said, Houses don't count too many employees on their payroll, so the net effect of each individual loss is somewhat smaller (and the net effect works out to about $32/household). Yes, families would have tightened their belts, and spent less - but then again, lost GM employees would have had the same trickle-down effect on the economy, too.
      Julius
      • 1 Year Ago
      It's amazing... an American automaker is making a profit, and the post about it is full of political bias. What's even more amazing is the LACK of the same commentary on the Chrysler post earlier, even though Chrysler was part of the same bailout, and still cost Americans money. Wonder of wonders, those comments are actually about CARS.
        Topher.Mctopherton
        • 1 Year Ago
        @Julius
        They will go bankrupt eventually... there a non issue.
        the.fog
        • 1 Year Ago
        @Julius
        That's because Chrysler is controlled by a foreign entity. Isn't that the goal of most self-loathing americans? To sell off/***** out what once was great about this country? GM is successful and america can't stand it. Too bad the company didn't relocate power to GMIO in Shanghai (as they contemplated).
        Kyle K Hemi Santos
        • 1 Year Ago
        @Julius
        Yeah do some homework Chrysler paid back it's loans with interest and early. Good thing your keeping up to date.
      Seal Rchin
      • 1 Year Ago
      Yesssss, about to get paid. What? No? GM will not give the money back?
      Cool Disco Dan
      • 1 Year Ago
      How can a company that owes Americans so much money claim a profit if its debt isn't zero?
        NBCARGUY
        • 1 Year Ago
        @Cool Disco Dan
        the loan were converted to equity in the company; the value of the debt is pegged to the stock price and not the value of the loan.
      A P
      • 1 Year Ago
      It is only fair the GM pay the taxpayers back what we lost on GM stock. Payments are fine, we dont have to break them, but they need to pay it back, period.
        Hampton
        • 1 Year Ago
        @A P
        I think millions of people feel the same.The taxpayer is out 10 billion dollars. I won't consider GM until it's paid back to us.
          R.t Voll
          • 1 Year Ago
          @Hampton
          It never will get paid back. Do you honestly think GM or the government cares about you? Your just a source of money.
      Topher.Mctopherton
      • 1 Year Ago
      GM:wooo!!! we almost made a billion in profit! thank god we don't have to count the 10-billion we duped the public and government into taking from us!! yah us!! moar cigars!
        darkness
        • 1 Year Ago
        @Topher.Mctopherton
        Woo what about the billions in planes and tanks the military didn't order or do you only troll GM post, stick that cigar in your vag and smoke it.
      darkness
      • 1 Year Ago
      Yeah union members got a hell of a deal like, erased 401ks, indefinite layoffs and plant shutdowns and being forced to move yeah some of us lost a lot but none of you care about that. You people suck.
        Bandit5317
        • 1 Year Ago
        @darkness
        While all of what you mentioned is swinging too far in the opposite direction, 'Old GM' union members and the current UAW members are still far overpayed for unskilled labor. Even conservative estimates peg their wages at $29 an hour plus benefits. I would be extremely fortunate to make that much out of college with a degree in electrical engineering.
          darkness
          • 1 Year Ago
          @Bandit5317
          I never knew you getting a degree entitled you to make more money than me but hey.
          knightrider_6
          • 1 Year Ago
          @Bandit5317
          @Bandit5317 According to conservative estimates, Walmart employees make $50 an hour and get 4 weeks paid leave plus medical. Just ask any conservative.
      CEC
      • 1 Year Ago
      Here is a fact for all of those that didn't support the government funded bankruptcies: If GM and Chrysler repaid the amount the government lost on the loans, and you were reimbursed that money you would get a refund of $36.57. $32.36 for GM and $4.21 for Chrysler. I would gladly pay that to keep two of Americas greatest companies and it's workers employed. A better way of getting that money back would be by purchasing one of their vehicles and asking for a "Individual Tax Return Rebate" for the above amounts. I'm sure they would give you that much off MSRP without blinking.
      Wm
      • 1 Year Ago
      Not mentioned is that market share in the US is still dropping, down another 3 tenths of a percent.
      R.t Voll
      • 1 Year Ago
      And political fight in 3...2..1..
      stecki3d
      • 1 Year Ago
      that photo of the RenCen looks like a CG rendering architects do to sell the project.
        MarlonJBT2
        • 1 Year Ago
        @stecki3d
        Heh. The Ren Cen looks like that in person too. Worked in there for 6 years!
      darkness
      • 1 Year Ago
      Republicans don't want anybody to have anything $28.71.is not a lot of money maybe you chose the wrong field to waste money on a degree in.
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