GM reports $2 billion net income in July-September quarter

General Motors Company today reported a net income of $2 billion boosted by a $2.1 billion pre-tax revenue from its North American sales in the third quarter of 2010, up from $1.6 billion in the second quarter.

Earnings per share for the third quarter ended 30 September 2010 stood at $1.20 per share on a fully diluted basis and adjusted for 3-1 stock split, the company said.

Total revenue of the company during the quarter stood at $34.1 billion.
 
Earnings before interest and tax (EBIT) stood at $2.3 billion. Net cash flow from operating activities stood at $2.6 billion while free cash flow stood at $1.4 billion.

"As demonstrated by our third consecutive quarter of profitability and positive cash flow, these results continue our significant progress," said Chris Liddell, vice chairman and chief financial officer.

GM North America reported EBIT of $2.1 billion in the third quarter of 2010, up from $1.6 billion in the second quarter.  GM Europe had a loss before interest and taxes of $0.6 billion, down from a loss of $0.2 billion in the second quarter. GM International Operations posted EBIT of $0.6 billion, down from $0.7 billion in the second quarter.

Net operating income was $2.6 billion and after adjusting for capital expenditures of $1.2 billion, free cash flow was $1.4 billion. 

GM expects to report positive pre-tax income in the fourth quarter as well, although at a significantly lower rate than in the first three quarters, and a profitable 2010 calendar year.

GM has proposed to raise up to $13 billion through sale of common and preferred shares in order to repay part of the government loan and allow the US Treasury to reduce its stake in GM.