General Motors reported slightly lower third-quarter profits yesterday as the costs of ignition-switch litigation settlements offset strong profits in North America. The biggest US automaker reported net income of $1.4bn, 7.6% below the year-ago level. Revenues fell 1.0% to $38.8bn.
But results were lifted by a 34% rise in pre-tax North American earnings to $3.3bn. US auto sales in September soared to their fastest pace in more than a decade.
GM sold 794,000 cars in the US during the quarter, up 9.2% from the same period of 2014.
GM’s performance in other regions was far more modest. The auto giant reported slightly higher pre-tax profits in its international operations business, which includes China. GM’s car sales in China were 814,000, down 4.2% from the year-ago period. On the positive side, GM’s profit margin in its China ventures rose to 9.8% from 9.6%.
GM’s European business reported a loss of $231mn, smaller than the $387mn loss in the year-ago period. The loss in South America was $217mn, compared with a $32mn loss in the 2014 quarter.
“These results reflect our work to capitalize on our strengths in the US and China, while taking decisive, proactive steps to mitigate challenges elsewhere,” said GM chief executive Mary Barra. Results translated into $1.50 per share, excluding the charges, much above the $1.19 per share forecast by analysts.