GM Beats Expectations, Posts $1.4 Billion Third Quarter Profit

DETROIT (WWJ) - General Motors posted a $1.4 billion third quarter profit, off slightly from the third quarter last year. The company's pre-tax earnings for the quarter set a record—$3.1 billion—meaning an adjusted earnings per share of $1.50, beating Wall Street expectations.

The earnings were impacted by a number of special costs, including a $1.5 billion dollar legal charge to pay for the company's settlement with federal prosecutors, and a deal to settle hundreds of lawsuits.

GM had record earnings in China, and posted $3.3 billion in pre tax earnings in North America. GM lost money in Europe and South America.

"These results reflect our work to capitalize on our strengths in the U.S. and China," said CEO Mary Barra.

Net revenue actually fell in the third quarter, from $39.3 billion last year, to $38.8 billion this year. GM says that reflects changing exchange rates.

Analysts say GM was helped by strong sales in its home market, particularly strong sales of pickups and crossovers. The company's profit margin in North America improved to 11.8 percent.

Barra says new products will help the company to continue to post solid earnings.

"GM is a vastly different company today than just five years ago. Were building a strong foundation, driving earnings growth in our core business and executive a plan to lead the future of personal mobility, all with the aim of creating shareholder value for years to come."