General Motors Announces 2013 Q3 Income of $700 Million
The most promising bit of information from General Motors’ 2013 Q3 financial statement is that the company reported revenue of $39 billion, up from the $37.6 billion that GM brought in during the third quarter of 2012. The problem is that General Motors purchased almost a billion dollars worth of their own preferred stock during the third quarter and that caused their net income number to drop by better than 50% from the third quarter of 2012 to the same period in 2013. If not for the sizable buyback of company stock, GM would have had an income figure of $1.6 billion in 2013 Q3.
“We made gains in the third quarter as we improved our North American margins and increased our global share on the strength of our Chevrolet brand," said Dan Akerson, GM chairman and CEO. “Our efforts to build great cars and trucks and deliver solid financial results were recognized this quarter by Moody’s investment grade rating.”
General Motors’ earnings before interest and taxes (EBIT) grew from $2.3 billion in 2012 Q3 to $2.6 billion during the last quarter while net cash flow from operating activities jumped from $3.1 billion to $3.3 billion and free cash flow increased from $1.2 billion to $1.3 billion.
“During the quarter strong demand for new vehicles like the Cadillac ATS, Chevrolet Onix and the all-new Chevrolet Silverado helped boost our top-line,” said Dan Ammann, GM executive vice president and CFO. “We also further strengthened our fortress balance sheet and reduced our cost of capital through our $4.5 billion refinancing of high cost obligations.”