GM Reports Record Profit, Doubling 2015 Numbers

DETROIT (AP/WWJ) - General Motors reported a record third-quarter profit that doubled the same period a year ago, despite falling sales and market share in the U.S.

The Detroit automaker earned $2.77 billion, or $1.76 per share, compared with $1.36 billion, or 84 cents per share a year ago.

Sales in the U.S., GM's most lucrative market, fell nearly 4 percent in the quarter. But GM said its strategy to cut low-profit sales to rental car companies, a strong performance in China and cost cuts led to the record.

Excluding a 4-cent benefit from an unspecified ignition-switch recall recovery, GM made $1.72 per share. That beat Wall Street estimates of $1.46 per share. Revenue hit a record $42.8 billion.

U.S. auto sales have started to slow after hitting a record 17.5 million last year.

General Motors cited "revenue driven by robust retail sales in the United States, strong performance in China, growth in wholesale volume and effective cost performance."

Net revenue of $42.8 billion, was up 10.3 percent; the net income of $2.8 billion, was up 104 percent

Their free-cash-flow was $3.5 billion, up from $2.7 billion a year ago.

GM Chairman and CEO Mary Barra, and Executive Vice President and CFO Chuck Stevens, will host a conference call for investor analysts today at 10 a.m. EDT to discuss third-quarter business results.