General Motors Corporation’s (NYSE:GM) October Sales Rise In U.S. And China

Boston, MA 11/05/2013 (wallstreetpr) – The U.S. based automobile major General Motors Corporation (NYSE:GM) saw its U.S. sales climb after the recent federal government shutdown ended. For October 2013, the auto giant reported around 15.7% rise in automobile sales in the USA, with fleet sales rising by 14% and retail sales by 16% owing to record pickup truck sales in the same month. Furthermore, the automobile conglomerate’s sales rose about 12% in its largest market China. The sales have surpassed overall analyst expectations of about 10% growth.

General Motors reported mixed results for its third quarter earnings report. Owing to one-time costs eclipsing its revenues, General Motors had registered a 6% net decline in profits for the third quarter of 2013, with net profit falling to around $1.72 billion from about $1.83 billion for the corresponding period a year ago. After preferred dividends, net stakeholder income fell to $757 million, amounting to earnings per share of $0.45 a share, versus $1.48 billion, or $0.89 a share for the corresponding FY2012 quarter. Revenue, however, dropped below analyst estimates $39.49 billion despite rising by 3.7% to roughly $39 billion. Analysts now expect sales forecasts for cars of around $15.4 million in October from about 15.2 million in September.

For the first time in Europe, General Motors witnessed slight revenue growth roughly to $4.85 billion from $4.7 billion, helping the global automobile giant recover part of its losses in Europe. Resultant losses amounted to about $214 million, falling way below the $487 million loss reported for the previous year. The automobile maker’s overall global market share has gone up by about 0.1% to 11.7%. Meanwhile, the carmaker will launch new models Chevrolet Silverado High Country and GMC Sierra Denali in November, which should help augment future sales.

Mixed results notwithstanding, General Motors’s shares have been rock steady over the last 90 days, well above the $34 mark, implying strong investor faith. Stocks rose slightly by 0.21% to close at $37.47 at the NYSE trading close on November 04 from their previous close at $37.39. After-hours trading saw a small $0.03 jump to $37.50.

Published by Duncan Oleinic

Duncan Oleinic is from New Yourk. After graduating with a degree in physics, he began his career as an analyst in a broking firm. Through this experience he was able to advance to the role of correspondent for a U.S based financial news provider, where he worked from 2001 to 2007. He subsequently joined a merchant banking firm as a financial analyst focused on valuing unlisted companies in the sub-continent. Over the course of his two years here, he performed valuations of several media companies which were later acquired by peers.

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