recently announced its best third-quarter unit sales since 1980 with over 2.4 million vehicles sold globally
. Now, the automaker has put out the financial portion of its Q3 results, and as the previous figures suggested, GM did very well for the quarter. It even beat analysts' predictions.
GM's net income for Q3 was $1.4 billion, which was twice as much as its $700 million in income for the same quarter in 2013. The strong performance could have been even better, too, as the automaker said that special items like flood damage at the GM Technical Center in Warren, MI, and "long-lived asset impairments in Russia" cost the company $300 million.
Revenue was up slightly, as well, to $39.3 billion, compared to $39 billion for last year. For the first three quarters of 2014, total revenue has been $116.3 billion, versus $114.9 billion through the same period in 2013. According to The Motley Fool
, analysts had expected lower numbers, and those predictions had led to a decline in GM's share price
before the results were announced.
Regionally, the US strongly supported GM's bottom line during the quarter. Earnings before interest and tax (EBIT) reached $2.5 billion, compared to $2.2 billion last year. "Strong performance in North America, where we achieved a 9.5 percent margin, anchored our overall results," said Chuck Stevens, GM executive vice president and chief financial officer, in the company's financial announcement. The results are especially impressive when you consider this is a market with over 70 recalls from the automaker this year
covering roughly 26.5 million vehicles.
Things were a bit more tempered elsewhere. Europe posted a $400 million loss in EBIT, including $200 million in restructuring costs, compared a $200 million loss in 2013. GM International Operations and South America remained exactly the same with an EBIT $300 million between this year and last year for both divisions.
The fourth quarter may continue GM's growth. In the US, the automaker is introducing the Chevrolet Colorado
and GMC Canyon
, and for China it has the Cadillac ATS-L
, Buick Envision
and new Chevrolet Cruze
. Scroll down
for the company's full announcement.