General Motors sees 12 percent profit drop
DETROIT General Motors (GM) says its third-quarter profit fell 12 percent as losses grew in Europe and North American warranty costs cut into earnings.
The company says it earned $1.5 billion from July through September, down from $1.7 billion a year earlier.
GM earned 89 cents per share compared with $1.03 a year earlier. Revenue grew 2.5 percent to $37.6 billion.
Excluding one-time items, GM made 93 cents per share, easily beating Wall Street expectations of 60 cents.
But GM lost $478 million pretax in Europe, compared with a $292 million loss a year earlier. In North America, pretax profits fell 17 percent to $1.8 billion.
The company predicted further European losses this year but expects to break even there by mid-decade.
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