GM Reports 3Q Profit Of $2 Billion

GM says it earned two billion dollars in the third quarter, and expects to make money for the full year, for the first time since 2004.

"We've arrived here, because we continue to deliver on our major business objectives," said CEO Dan Akerson, on a conference call.

Akerson warned that GM's fourth quarter earnings will be impacted by the cost of launching new products, including the Chevrolet Volt. GM promised pre-tax earnings in the fourth quarter, but did not say whether it would post an operating profit for the last three months of the year.

"We expect to post solidly profitable results for the calender year, even though we anticipate our fourth quarter results will moderate significantly from the run rate of the first three quarters," said Akerson.

Listen to GM CEO Dan Akerson on today's Wordlwide Automotive Report.

The third-quarter earnings of $1.20 per share nearly match what GM made in the first two quarters of the year combined, aided by profits from overseas and healthy revenue from North America, the company said Wednesday. The earnings were boosted by higher prices from newly introduced models such as the Buick LaCrosse, a midsize luxury sedan.

They also were another indication of a widespread recovery among global automakers. Toyota, Honda, Nissan, Chrysler and Ford all reported improved results in the most recent quarter as auto sales slowly rise.

 The strong quarter meant that GM met projections it made a week ago that net income for the quarter would be $1.9 billion to $2.1 billion.

It was the third-straight profitable quarter for GM, which needed $50 billion in U.S. government aid to make it through bankruptcy protection last year. The company has repaid or plans to repay taxpayers $9.5 billion, and the government hopes to get back the remaining $40 billion with the Nov. 18 common stock offering and several follow-up sales.

The latest results reversed a $908 million loss, or 73 cents per share, in the third quarter of last year, a short quarter for GM because it spent the first nine days in bankruptcy protection.

The Detroit automaker posted $34.1 billion in revenue for the July-through-September quarter, up 35 percent from the $25.1 billion in the shortened period last year. GM had said last week that revenue could reach $34 billion for the quarter.

"This is a company that's been able to wash away thirty years of sins," said analyst Michael Robinet of IHS Automotive. "Now you're really seeing what a fully functional General Motors can do."

WWJ AutoBeat Reporter Jeff Gilbert and the Associated Press contributed to this story.

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