General Motors sees 12 percent profit drop

The logo of General Motors, seen in Detroit, Mich. AP Photo/Paul Sancya

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.

Comments

CBSN Live

pop-out
Live Video

Market Data

Watch CBSN Live

Watch CBS News anytime, anywhere with the new 24/7 digital news network. Stream CBSN live or on demand for FREE on your TV, computer, tablet, or smartphone.

Watch Now

Market News

Stock Watchlist

New Android App

For your Android phone and tablet, download the FREE redesigned app, featuring CBSN, live 24/7 news.

Download
The all new
CBS News App for Android® for iPad® for iPhone®
Fully redesigned. Featuring CBSN, 24/7 live news. Get the App