Profit of U.S. group General Motors (NYSE:GM) fell by 15% in the third quarter, from $2 billion last year to 1.7 billion dollars this year because of poor results of operations outside North America, according to Wall Street Journal. The stock of Detroit, Michigan carmaker was $22.50 today at 3PM (EST), down 10% from Tuesday. Earnings per share, $1.03, exceeded, however, analysts expectations of 99 cents. Operating earnings, reflecting the development activities of the GM, fell from $2.3 billion to 2.2 billion dollars. Revenues were up by 7%, from 34.1 billion dollars to 36.7 billion dollars. EBIT (earnings before interest and taxes) were down to $2.2 billion from $2.3 billion last year.
“GM had a solid quarter in North America and China”, said Dan Akerson, GM CEO. “We must work to improve the profitability in other regions of the world”, said GM chief financial officer, Daniel Ammann.
The American Group has been for seven consecutive quarters on profit, including the quarter ended in September. On the North American market, where the carmaker generated losses until recently, profit rose to $2.1 billion in the third quarter of last year and to $2.2 billion in the same period in 2011.
In other regions, GM had worse results. In Europe, the group managed to reduce losses to $292 million, half over the same period last year. However, GM has given up the objective of break-even in Europe this year because of the economic problems in the region. GM’s international division, which includes the emerging markets of Russia, India and China, has generated a profit of 365 million dollars, as opposed to 516 million dollars a year ago.