GM Reports Net Income of $1.7 Billion

General Motors Co. (NYSE: GM) announced third quarter net income attributable to common stockholders of $1.7 billion, or $1.03 per fully-diluted share. In the third quarter of 2010, GM’s net income attributable to common stockholders was $2.0 billion, or $1.20 per fully-diluted share.

Net revenue increased $2.6 billion to $36.7 billion, compared with the third quarter of 2010.  Earnings before interest and tax (EBIT) adjusted was $2.2 billion, compared with $2.3 billion in the third quarter of 2010.  There were no special items in either period.  

“GM delivered a solid quarter thanks to our leadership positions in North America and China, where we have grown both sales and market share this year.  But solid isn’t good enough, even in a tough global economy,” said Dan Akerson, chairman and CEO.  “Our overall results underscore the work we have to do to leverage our scale and further improve our margins everywhere we do business.”

GM Results Overview (in billions except for per share amounts)

• GM North America (GMNA) reported EBIT-adjusted of $2.2 billion, an improvement of $0.1 billion compared with the third quarter of 2010.
• GM Europe (GME) reported an EBIT-adjusted loss of $0.3 billion, an improvement of $0.3 billion compared with the third quarter of 2010.  
• GM International Operations (GMIO) reported EBIT-adjusted of $0.4 billion, down $0.1 billion from the third quarter of 2010. 
• GM South America (GMSA) reported breakeven results on an EBIT-adjusted basis, down $0.2 billion from the third quarter of 2010.  

For the quarter, automotive cash flow from operating activities was $1.8 billion and automotive free cash flow was $0.3 billion.  

GM ended the quarter with very strong total automotive liquidity of $38.8 billion.  Automotive cash and marketable securities, including Canadian Health Care Trust restricted cash, was $33.0 billion compared with $33.8 billion at the end of the second quarter of 2011.

Based on current industry outlook, the company expects EBIT-adjusted results in the fourth quarter of 2011 will be similar to the fourth quarter of 2010 as a result of seasonal trends in North America and weakness in Europe.  GM also expects to record a special item in the fourth quarter to recognize a $800 million non-cash settlement gain related to a Canadian Health Care Trust settlement.

Calendar-year EBIT-adjusted for 2011 is expected to show solid improvement over 2010, as previously indicated.  However, the company does not expect to achieve its target to break even on an EBIT-adjusted basis before restructuring charges in Europe, due to deteriorating economic conditions.

“GM continues to execute the plan we outlined for investors in 2010,” said Dan Ammann, senior vice president and CFO.  “That includes investing in our products, further strengthening our balance sheet, generating cash and profits each quarter, and maintaining our low break-even level.  The next level of performance will come as we systematically eliminate complexity and cost throughout the organization.”

General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company has leadership positions in the world's largest and fastest-growing automotive markets.  GM’s brands include Chevrolet and Cadillac, as well as Baojun, Buick, GMC, Holden, Isuzu, Daewoo, Jiefang, Opel, Vauxhall and Wuling.