There isn’t much good news coming out today about General Motors (NYSE:GM) as earnings faltered due to low overseas sales, which is largely driven by China.
GM, the biggest domestic auto company, said it earned $698 millionin the third quarter, compared with $1.47 billion in the same period last year, a drop primarily because of special charges related to the repurchase of 120 million shares of preferred stock. Revenue during the quarter rose about 4 percent to $38.98 billion, up from $37.57 billion.
The company’s best performance came in North America, where it reported a pretax profit $2.18 billion, compared with $1.71 billion in the third quarter of 2012. But its overseas operations struggled during the quarter.
Pretax earnings in its international division, which includes China, fell to $299 million, down from $761 million in the same period last year.
GM Earnings Fall on Overseas Operations – New York Times
New York TimesGM Earnings Fall on Overseas OperationsNew York TimesGM, the biggest domestic auto company, said it earned $698 million in the third quarter, compared with $1.47 billion in the same period last year, a drop primarily because of special …
In additional GM news, a study released shows that the US took a $9 Billion (yes, Billion with a “B”) hit on the nearly $50 billion bailout of U.S. automaker General Motors Co. (NYSE:GM), according to a quarterly report to Congress on Tuesday.
In 2009, the U.S. Treasury extended $49.5 billion in loans to GM in exchange for $2.1 billion in preferred stock and a 60.8 percent equity stake.
The Treasury has since whittled down its stake in GM through a series of stock sales. Those sales have all taken place below the price Treasury needed to break even on its GM investment, resulting in the loss, according to Tuesday’s report from the Special Inspector General overseeing the $700 billion Troubled Asset Relief Program.
Shhhh.. Don’t tell @billmaher ‘US swallowed $9.7 billion loss on General Motors rescue’ http://t.co/pXOHB7vWVB