October 3, 2022

GM Turning Things Around With Third Quarter Profit

GM General Motors

GM is continuing its promised turnaround, heading for a full year of quarterly profits if things continue going well

Business is starting to turn around for General Motors Co. Thanks to restructuring, better brand marketing and corporate cost cutting, the automaker posted a $2 billion profit on Wednesday for the third quarter of this year. This represents the largest quarterly profit for GM since coming out of bankruptcy proceedings in July 2009.

Investors are carefully evaluating the company and its financial data in anticipation of a $13 billion IPO set for next week. GM said solid profits are expected for its 2010 results. If this happens, it would be the first full year profit since 2004.

The upcoming IPO, which is to include both preferred as well as common shares of stock, will aid the United States Treasury in reducing the amount of stake in GM. The stake will decrease from a current amount of 61 percent to closer to 43 percent.

The automaker is banking on strong sales continuing in North America, which have been up this year. Executives know they have more work to do in Europe and other international markets. Sales for the third quarter were up only slightly in a number of the international markets, but down in Europe resulting in a loss for that market.

Ford also reported a profit in the third quarter of $1.7 billion bringing it in second behind GM. Chrysler reported an $84 million net loss for the quarter.