General Motors Co. made an official statement today that its third-quarter profit increased by 1%, only a month after its Chief Executive Officer, Mary Barra, said the companys investors are putting her under pressure to boost performance.
The Chief Financial Officer of the company, Chuck Stevens, said in a news release, cited by the Wall Street Journal: “Strong performance in North America anchored our overall results.”
According to General Motors statement, its adjusted earnings per share increased from 96 cents a year earlier to 97 cents, excluding one-time items. This result surpassed the initial analysts forecasts of 95 cents a share. The companys net income increased from $698 million, or 45 cents a share, a year earlier to $1.38 billion, or 81 cents a share. The revenue of General Motors slightly increased from $39 billion to $39.3 billion. This result fell short of analysts forecasts, which pointed to $39.8 billion.
The major part of GMs operating profit was generated in North America due to the fact that customers spending for new cars and trucks was higher in the region, while General Motors held the line of discounts.
The CEO Barra, who take over the company in the middle of January, has faced hard time due to extensive vehicle recalls, internal investigation and public disapproval.
General Motors also revealed in its statement that its adjusted automotive free cash flow declined from $1.3 billion in the previous year to $800 million during the period. The Automotive cash flow generated from operations was about $700 million positive. Still, the companys available liquidity declined from $37.3 billion to $36.6 billion.
General Motors Co. was 1.52% up to close at $31.31 per share yesterday, marking a one-year decrease of 11.58%. The company is valued at $50.24 billion. According to CNN Money, the 17 analysts offering 12-month price forecasts for General Motors Co. have a median target of $43.00, with a high estimate of $53.00 and a low estimate of $27.00. The median estimate represents a +37.34% increase from the last price of $31.31.
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