Arab Today, arab today gm profit drops on weakness in europe south america
Last Updated : GMT 01:30:09
Arab Today, arab today
Arab Today, arab today

GM profit drops on weakness in Europe, South America

Arab Today, arab today

Arab Today, arab today GM profit drops on weakness in Europe, South America

GM
New York - AFP

General Motors Thursday reported lower third-quarter earnings on weakness in some international markets, but showed signs of emerging from a costly ignition-recall scandal.
Earnings at GM, the biggest US automaker, fell 14.3 percent from the year-ago period to $1.47 billion as the company reported operating losses in both Europe and South America.
But GM reported higher operating earnings in North America, where sales of the automaker's recently launched sports utility vehicles have soared amid lower gasoline prices.
GM also announced no fresh financial hit from recalls announced in the wake of the faulty ignition scandal. Charges totalling $2.5 billion to cover recalls weighed on earnings in the prior two quarters.
"Strong global sales and growing margins in North America and China helped GM deliver very solid third-quarter results," said GM chief executive Mary Barra.
"Despite industry challenges in Russia and South America, our earnings were on plan as we continue to execute our customer-focused strategy."
-Currency headwinds-
 Operating earnings rose 12.1 percent in North America to $2.45 billion. Vehicle deliveries jumped 12.8 percent amid brisk industry-wide sales in the giant US market.
Barra cited particularly strong sales in pickup trucks and SUVs following recent launches of the GMC Canyon and other vehicles that are expected to generate further gains in the fourth quarter as the products become more widely available.
GM's also reported positive earnings and strong sales in its international unit that includes China. Deliveries in the booming Chinese market soared 14.1 percent higher from the year-ago period to 850,000.
But GM's loss deepened in Europe, where consumer spending remains meager amid lackluster economic growth. The auto giant also took a $200 million asset-impairment charge in Russia as it trimmed staff and cut factory capacity to deal with reduced demand following the ruble's devaluation.
The South America division notched a $32 million loss compared with a $284 million gain in the year-ago period. Sales in Venezuela have fallen sharply due to a currency devaluation, while deliveries in Brazil have dropped in a weaker economy.
Still, the loss in South America was smaller than in the third quarter. Chief financial officer Chuck Stevens said South America should see "continued improvement" in the fourth quarter.
GM expects "significant improvement" in 2015 in Europe, Stevens added. The automaker has said its European segment will return to profitability in 2016.
In terms of the recall, Barra said GM has repaired more than 1.2 million vehicles affected by the ignition-switch problem.
She said the company was stepping up outreach to the remaining population of affected consumers now that GM has obtained all the necessary equipment to complete the repairs. GM recalled some 2.6 million cars in February to address the ignition-switch problem, which has caused at least 29 fatalities.
The automaker has recalled nearly 30 million vehicles in all in 2014, but most of the remaining recalls have been for safety problems other than the ignition-switch issue.
GM's results translated into earnings per share of 97 cents, excluding special charges. That was two cents above analyst expectations.
Revenues rose 0.6 percent to $39.26 billion, slightly below the $39.52 billion projected by analysts.
GM shares dipped 0.5 percent to $31.17 in midday trade.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today gm profit drops on weakness in europe south america Arab Today, arab today gm profit drops on weakness in europe south america

 



Arab Today, arab today
Arab Today, arab today Heart of Turkish Riviera is Alluring Seaside Escape

GMT 11:11 2017 Tuesday ,28 March

Heart of Turkish Riviera is Alluring Seaside Escape
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Russia, Iran ink economic deals

GMT 08:03 2017 Wednesday ,29 March

Russia, Iran ink economic deals
Arab Today, arab today Media host gives priority to problems of people

GMT 07:00 2017 Tuesday ,28 March

Media host gives priority to problems of people
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Disaster costs nearly double to $175bn

GMT 10:42 2017 Tuesday ,28 March

Disaster costs nearly double to $175bn
Arab Today, arab today Campaign fights sexual harassment in Egypt

GMT 11:14 2017 Tuesday ,28 March

Campaign fights sexual harassment in Egypt
Arab Today, arab today Trump moves to roll back Obama climate measures

GMT 08:39 2017 Wednesday ,29 March

Trump moves to roll back Obama climate measures
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Mercedes, VW recall million vehicles in China

GMT 09:16 2017 Wednesday ,29 March

Mercedes, VW recall million vehicles in China
Arab Today, arab today Uber grounds self-driving cars

GMT 09:11 2017 Monday ,27 March

Uber grounds self-driving cars
Arab Today, arab today Trump poised to roll back climate protections

GMT 09:28 2017 Tuesday ,28 March

Trump poised to roll back climate protections

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 11:10 2017 Monday ,27 March

Trump to roll back Obama clean power plan

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 11:55 2017 Wednesday ,29 March

Need ‘gymspiration?’ The top fun fitness bloggers

GMT 09:02 2017 Thursday ,23 March

Laptop ban sparks ire

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 05:17 2017 Wednesday ,29 March

Samsung to sell refurbished Galaxy Note 7s

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday