Is General Motors Company (NYSE:GM) Turningaround?
General Motors Company (NYSE:GM) has announced its 2013 Q3 results. The company had net income of $700M which was 50% less compared to the same quarter in the previous year. What was pretty promising news from the company was its revenue of $39B, which stood above the $37.6M that the company had brought in during 2012 Q3.
The reason for the dip was that General Motors Company (NYSE:GM) bought almost one billion dollars worth of their company’s preferred-stock in the Q3. This resulted in a drop of more than 50% in their net income number in comparison to the 2012 Q3. Had the company not made this sizeable buyback, its income figure in the Q3 of 2013 would have been $1.6 billion.
General Motors Company (NYSE:GM) will always be remembered as one automobile company that had to be bailed out by the government in 2009, to stay afloat. Chrysler was another company that had been sailing in the same boat at that point of time. Since then, General Motors Company (NYSE:GM), which is the largest domestic automaker is still struggling to maintain some consistency on all fronts. In the first 9 months of 2013, there was a 7.6% increase in sales in the U.S in comparison with the 8.1% increase in the overall market.
In comparison, Chrysler’s sales grew by 8.7% and Ford’s sales rose by 12%. In the Q3, General Motors Company (NYSE:GM) reported a market share of 17.3 percent United States which is a dip of 17.6% from the year ago levels. General Motors Company (NYSE:GM) is banking very heavily on improvement in sales of the company’s pickup trucks. These had been recently redesigned to boost its earnings. General Motors Company (NYSE:GM) is now introducing new version, full-size SUV’s similar to the Chevrolet Suburban.
About the company
General Motors Company (NYSE:GM) is designs and builds cars as well as sells them. It also manufactures automobiles part and trucks globally. The company provides automotive-financing services via the General Motors Financial Company.