General Motors reports $2 billion profit

November 10th, 2010 - 9:21 pm ICT by BNO News  

DETROIT, MICHIGAN (BNO NEWS) — General Motors Company (GM) on Wednesday reported its net income of $2 billion in the third quarter with a revenue of $34 billion, which represents a 20 percent increase.

The motor company, which emerged from a government-financed restructuring under bankruptcy protection in July 2009, reported its earnings per share of $1.20 as it is planning an initial public offering this month.

“As demonstrated by our third consecutive quarter of profitability and positive cash flow, these results continue our significant progress,” said Chris Liddell, vice chairman and chief financial officer.

In addition, GM expects to report positive earnings before interest and tax for the fourth quarter, albeit at a significantly lower run rate than each of the first three quarters, and profitable year-end results for the current calendar year.

GM North America had earnings before interest and tax in the third quarter of $2.1 billion, up from $1.6 billion in the second quarter, while GM Europe had a loss before interest and taxes of $0.6 billion, down from a loss of $0.2 billion in the second quarter. Meanwhile, GM International Operations posted earnings before interest and tax of $0.6 billion, down from $0.7 billion in the second quarter.

Currently, the U.S. government has a 60.8 percent stake in GM. The Canadian and Ontario governments have a combined holding of 11.7 percent.

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