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GM reports record earnings

General Motors reported a record third-quarter profit that doubled results in the same period a year ago, despite falling sales and market share in the U.S.

The Detroit automaker earned $2.77 billion, or $1.76 per share, compared with $1.36 billion, or 84 cents per share a year ago.

Sales in the U.S., GM's most lucrative market, fell nearly 4 per cent through September. But GM said its strategy to cut low-profit sales to rental car companies and focus on sales to individual buyers, a strong performance in China and cost cuts led to the record.

Excluding a 4-cent benefit from an unspecified ignition-switch recall recovery, GM earned $1.72 per share. That soundly beat Wall Street estimates of $1.46 per share. Revenue hit a record $42.8 billion.

Stock market reaction was underwhelming. Shares of GM rose just under 1 per cent to $32.98 in premarket trading Tuesday. They've ranged from $26.69 to $36.88 during the past year but recently have been below the company's $33 initial public offering price in 2010.

U.S. auto sales have started to slow after hitting a record 17.5 million last year, but GM seems to be unaffected.

The company said it expects the strong performance to continue through the fourth quarter, and it put a little more swagger on its full-year guidance. GM now expects pretax earnings to be at the high end of previous guidance of $5.50 to $6 per share.



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