Detroit, MI, United States (4E) – General Motors Co. said profit in the third quarter fell but topped forecasts as the company’s North American earnings, driven by redesigned large pickups, which helped offset losses in international business.
Third-quarter earnings fell 53 percent to $700mn on $39bn revenue, according to the largest U.S. automaker. GM attributed the decline in profits to tax charges and one-time items. Last year, GM posted earnings of $1.5bn on $37.6bn revenue.
Excluding one-time items, per-share profit was 96 cents, according to the Detroit-based GM data released Tuesday, beating the median estimate of 94 cents predicted by 13 analysts surveyed by Bloomberg News. The figure compares with 93 cents a share profit made a year ago.
GM’s North American business recorded a $2.2bn operating profit, higher by 29 percent from last year’s $1.7bn. Losses eased this year at the company’s struggling European operations compared to a year ago, reporting a $200mn loss compared with last year’s $500mn.
The company’s U.S. operations are benefiting from the introduction of 18 new or refreshed products this year, such as the Silverado, which was last redesigned in 2006. Large pickups are among the most profitable vehicles by GM.
The automaker’s new products in the U.S. have helped the company sell vehicles at higher prices. The average transaction price for GM cars rose 3 percent to $31,626 in the third quarter from the previous three months, according to auto sales tracker Edmunds.com.