DETROIT (AP) - General Motors' third-quarter net income fell 53 percent compared with a year ago, as one-time expenses masked a strong performance in North America and a narrowed loss in Europe.
DETROIT (AP) — General Motors' third-quarter net income fell 53 percent compared with a year ago, as one-time expenses masked a strong performance in North America and a narrowed loss in Europe.
The company earned $698 million in the quarter, or 45 cents per share. That compares with $1.48 billion, or 89 cents per share, a year ago. But without $900 million in one-time items, GM earned $1.7 billion, or 96 cents per share. That beat Wall Street's expectations. Analysts polled by FactSet expected 94 cents per share.
Revenue rose 4 percent to $39 million, just short of Wall Street's estimate of $39.2 billion.
Investors viewed the results favorably. GM shares rose $1.09, or 3 percent, to $37.15 in trading before the opening bell.
GM's performance in North America was especially strong, with pretax earnings up 28 percent to $2.2 billion on solid pickup truck sales and better pricing. GM rolled out updated versions of its Silverado and Sierra pickups in the spring.
The company's profit margin in North America — the percentage of revenue it gets to keep after expenses — was the highest in two years at 9.3 percent. GM has a goal of 10 percent pretax margins in the region.
"The new trucks are doing great in the marketplace," Chief Financial Officer Dan Ammann said. "We're commanding good pricing. We're controlling costs."
In Europe, GM cut its loss by more than half to $214 million. Revenue there rose year-over-year for the first time in two years. Ammann said the company cut $400 million in costs during the quarter, and updated versions of its Opel Mokka small crossover SUV, Adam subcompact and Insignia midsize car sold well.
GM's International Operations, including Asia, saw pretax earnings fall 61 percent to $299 million due to struggles in India and other areas outside of China. South American profit rose 79 percent to $159 million. The company's financial unit saw a 20 percent rise in pretax earnings to $239 million.
One-time items included $800 million to buy preferred stock from a health care trust for union retirees and a $48 million impairment charge in South Korea.