General Motors, the biggest US automaker and the third largest carmaker in the world has announced its third quarter has brought record earnings, thanks to building demand for its trucks in North America and the rising profit margins from its Chinese operations.
The automaker announced its profit was $1.50 a share in the quarter, topping analyst estimations and the big quarter – considered by the company its best ever – have been in contrast to the more disappointing figures posted by the other large US carmakers – which have been impacted by the slowing Chinese sales and have also felt the brunt of the stronger US dollar. For Gm one of the reasons it had such a good quarter was its home performance, in North America, with cheap gasoline and easily accessible credit putting consumers on track to buy larger – with fatter profit – sport utility vehicles and pickup trucks, where GM has a strong appearance. The company said that 72 percent of its quarterly revenue came from the home region, with North American profit margins reaching a record of 11.8 percent.
GM’s chief financial officer Chuck Stevens added the automaker was now forecasting North America could yield a consistent, above 10 percent, profit margin for the entire year, which is one year ahead of schedule. China saw a drop in joint-venture profit for the period but its profit margins soared to 9.8 percent. Total revenues also slid 1.3 percent to $38.8 billion, mainly because of the currency exchange swing, with GM saying the revenue would have actually been 2.3 billion higher if the dollar remained constant.