General Motors announced today that it posted a net income of $1.5 billion in the third quarter of 2012, or 89 cents per fully diluted share, based primarily on the continued strength of the U.S. market. Earnings before income tax (EBIT) was $2.3 billion, compared with $2.2 billion in the third quarter of 2011 ($1.03 per share). Third quarter net revenue was $37.6 billion, up from $36.7 billion a year ago third quarter.
“GM had a solid quarter because customers around the world love our new vehicles and we’re also seeing green shoots take hold on tough issues like complexity reduction, pensions and Europe,” said Dan Ackerson, GM chairman and CEO, in a prepared statement. “We are going to keep playing offense with growth products like the Chevrolet Onix, Opel Mokka and Cadillac ATS and continue to systematically address business risks.”
Speaking of Europe, GM's European operations lost $0.5 billion, compared with a $0.3 billion loss in the third quarter of ’11. North American operations earned $1.8 billion this third quarter, off from $2.2 billion in Q3 ’11. GM estimates it will lose $1.5 billion to $1.8 billion in Europe for calendar year 2012.
GM South America earned $0.1 billion EBIT, whereas it simply broke even in the third quarter of 2011. GM's International operations earned $0.7 billion, versus $0.4 billion. GM Financial rose ever so slightly to $0.1 billion.