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GM overcomes huge recall costs to post healthy 3Q profit

GM overcomes huge recall costs to post healthy 3Q profit

Bill Stephens

October 21st, 2015

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DETROIT (AP) — General Motors’ third-quarter profit fell slightly, but the company rode strong North American sales to overcome $1.5 billion in costs from its deadly ignition switch recall.

The Detroit automaker’s net income dropped 1.4 percent from a year ago, but still was $1.36 billion, or 84 cents per share. That compares with $1.38 billion, or 81 cents per share a year ago.

Without the recall costs, GM would have made a $1.50 per share, soundly beating Wall Street expectations. Analysts polled by FactSet expected $1.18 per share.

The company posted a record $3.3 billion pretax profit in North America, more than offsetting a small decline in China and a loss in South America.

Revenue from July through September fell 1 percent to $38.8 billion, also beating analysts’ forecasts.

 

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