GM (GM) Beats Q3 Views; Slumps on Flat Q4 EBIT-Adj. Expectations, Margin Compression
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Shares of General Motors (NYSE GM) are trading lower early Wednesday following third-quarter earnings results.
Revenue at the automaker increased 7.6 percent from $34.06 billion during the same quarter last year to $36.72 billion.
Net income fell about 15 percent to $1.7 billion, or $1.03 per share.
The street was looking for earnings of 96 cents per share on revenue of $36.66 billion.
Net margin moved from 6.4 percent to 5.7 percent.
EBIT for the quarter, both adjusted and not, was $2.203 billion, down from $2.275 billion in the same period last year.
Worldwide employment moved from 202,000 at the end of 2010, to 210,000 for the September quarter.
Production volume in the quarter moved from 2.104 million last year to 2.221 million, a 5.6 percent increase.
U.S. vehicle sales improved from 558,000 in last year's third quarter to 641,000. Global sales rose from 2.062 million to 2.245 million.
Looking ahead, GM sees EBIT-adjusted results in the fourth quarter of 2011 similar to the fourth quarter of 2010 as a result of seasonal trends in North America and weakness in Europe. GM also expects to record a special item in the fourth quarter to recognize a $800 million non-cash settlement gain related to a Canadian Health Care Trust settlement.
GM shares are down about 7 percent ahead of the bell.
Revenue at the automaker increased 7.6 percent from $34.06 billion during the same quarter last year to $36.72 billion.
Net income fell about 15 percent to $1.7 billion, or $1.03 per share.
The street was looking for earnings of 96 cents per share on revenue of $36.66 billion.
Net margin moved from 6.4 percent to 5.7 percent.
EBIT for the quarter, both adjusted and not, was $2.203 billion, down from $2.275 billion in the same period last year.
Worldwide employment moved from 202,000 at the end of 2010, to 210,000 for the September quarter.
Production volume in the quarter moved from 2.104 million last year to 2.221 million, a 5.6 percent increase.
U.S. vehicle sales improved from 558,000 in last year's third quarter to 641,000. Global sales rose from 2.062 million to 2.245 million.
Looking ahead, GM sees EBIT-adjusted results in the fourth quarter of 2011 similar to the fourth quarter of 2010 as a result of seasonal trends in North America and weakness in Europe. GM also expects to record a special item in the fourth quarter to recognize a $800 million non-cash settlement gain related to a Canadian Health Care Trust settlement.
GM shares are down about 7 percent ahead of the bell.
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