General Motors yesterday reported lower third-quarter earnings as weakness in South America and Europe more than offset an improved performance in North America.
Earnings at GM, the biggest US automaker, fell 14.3% from the year-ago period to $1.47bn.
Operating earnings rose 12.1% in North America to $2.45bn. Vehicle deliveries jumped 12.8% in the region amid brisk industry-wide sales in the giant US market.
GM’s other region with positive earnings and strong sales was an international unit that includes China.
But GM’s loss deepened in Europe, where consumer spending remains meagre amid lacklustre economic growth. The auto giant also took a $200mn asset-impairment charge in Russia.
GM’s South America division notched a $32mn loss compared with a $284mn 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.
“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.”
The results translated into earnings per share of 97 cents, excluding special charges. That was two cents above analyst expectations. Revenues rose 0.6% to $39.26bn, slightly below the $39.52bn projected by analysts.
