Asia, South America Helps GM OffSet European Losses

Thank you China and South America! Wider losses in Europe and weaker earnings in North America led General Motors (GM) to report a 13% drop in its third quarter profit. But much of that financial hit was offset by stronger operating profits in Asia and South America, helping the car maker to actually beat analysts’ expectations.
WSJ writer Jeff Bennett reports today that deliveries of new models into South America so far this year helped the region resume profitability while China’s 10% rise in operating profit provided GM with another financial lift. GM posted earnings per share of 93 cents, beating the 60 cents projected by the Street. Revenue rose to $37.6 billion, surpassing the $35.7 billion expected last quarter. GM is laboring to contain widening European losses, which are expected to run from $1.5 billion to $1.8 billion this year. It sees Europe remaining a money pit until mid-decade, when the region is expcetd to break even. Still, the better-than expected third-quarter results and hopes for a restructuring in Europe helped send GM’s share price climbing 9.4% to $25.47 per share.(JP)