General Motors Co. (NYSE: GM) reported third-quarter 2012 results before markets opened this morning. The automaker posted diluted earnings per share (EPS) of $0.89 on revenues of $37.6 billion. In the same period a year ago, the company reported EPS of $1.03 on revenues of $36.7 billion. Third-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.60 and $35.7 billion in revenues.

The company's CEO said:

GM had a solid quarter because customers around the world love our new vehicles and we're also seeing green shoots take hold on tough issues like complexity reduction, pensions and Europe.

The CFO added:

While we still have a lot of work to do, especially in Europe, it is encouraging to see our results begin to reflect the discipline we are bringing to bear on the overall business.

In its outlook for the fourth quarter, GM said that results will be "similar to or slightly better than" the fourth quarter of 2011. The company expects its European division to post a calendar year 2012 earnings loss of $1.5 to $1.8 billion before taxes, depending on "the level of restructuring activity" in the quarter. The company expects 2013 European earnings before taxes to be slightly better in 2013 and to reach a breakeven point "by mid-decade."

The company also will reduce its pension benefits exposure by about 30% (about $29 billion) through annuitizations and lump sum cash payments of $2.6 billion in the fourth quarter. GM expects a pretax charge of about $2.9 billion in the fourth quarter as a special charge. That is about double this quarter's income, so on a GAAP basis, GM is essentially projecting a loss for the third quarter.

GM's shares are trading up 3.3% in premarket activity this morning, at $24.04. The company's shares closed at $23.28 on Friday, in a 52-week range of $18.72 to $27.68. The consensus target price for the shares was around $31.35 before today's report.

Paul Ausick

Filed under: 24/7 Wall St. Wire, Autos, Earnings Tagged: featured, GM

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I see that GM no longer mentions anything about bonuses any more, we all know the CEO,s are getting them. I am one of many retired GM workers who lost all their stock , also lost the 800 dollar bonus we got every year in place of cost of living allowances, we are still paying for health care that was supposed to be paid for by GM and every month when I get my pension check I see union dues deducted .As far as buying new cars that is out of the question for me with the cost of gas the way it is and the rising cost of prescription drugs for my wife and myself and no pay increases in sight, unless you want to count the 15 dollar social security increase we are getting this year. The 15 dollars won't even cover the increase on my deductable for social security. I totally believe that the whole bankruptsy was a scam by GM to get out of paying benefits as promised to the retire'es and to force the union to make concessions . A year later they were passing bonuses out like nothing ever happened, to the CEO's and working employe's, retire'es nothing and I am sure the same thing is still going on, they were told not to publicise it because of the hard feelings it caused after the bankruptsy.

October 31 2012 at 3:09 PM Report abuse rate up rate down Reply
Robert Simpson

If we don't buy GM cars....they'll have to go through a REAL Bankrupcy....and that would be a really good thing for all the non-union people living in the rust belt.

Toyota makes some really nice cars and trucks here in Texas.

Buy you one. American made....and NO federal bailouts.

October 31 2012 at 2:02 PM Report abuse rate up rate down Reply

Sorry, we can't post your comment due to "technical dfficulties". What's up with that?

October 31 2012 at 1:37 PM Report abuse rate up rate down Reply
2 replies to Bertrum's comment

won't post mine either

October 31 2012 at 1:58 PM Report abuse rate up rate down Reply

same thing just happened to me,me and AOL are going to part ways

October 31 2012 at 2:40 PM Report abuse rate up rate down Reply

When is GM going to pay we taxpayers the bollions they still owe us? Perhaps the UAW could pay usa back because Obama bailed them out to pay them back for the millions in campaign donations

October 31 2012 at 1:19 PM Report abuse rate up rate down Reply

please fix it so i can post moderators.

October 31 2012 at 1:13 PM Report abuse rate up rate down Reply

Good news, for GM and America. It`s great to see more people buying American cars again. Now if we could persuade more of the Asia supporters to buy American, it would help our economy even more. GM stock price would rise, the Government could sell it at a profit. Then we wouldn`t have to listen to incessant chatter from the crybabies always complaining about GM getting help from the Government.

October 31 2012 at 1:02 PM Report abuse rate up rate down Reply
2 replies to richard's comment

the number one made american car in america is the toyota camry and the number two one is the ford f150. i have one of each.

October 31 2012 at 1:11 PM Report abuse -1 rate up rate down Reply

You do realize that 85% of GM cars are made in China. And the majority are sold in China. All that money and it didn't help the US one bit. Google it for the facts.

October 31 2012 at 1:34 PM Report abuse +1 rate up rate down Reply
1 reply to Bertrum's comment

Considering all the assembly plants they have in the US, building millions of cars, China apparently really loves GM cars. Because GM cars built in China are for the Chinese market. GM doesn`t ship cars from China to the US.

October 31 2012 at 1:47 PM Report abuse -1 rate up rate down

GM Government Motors will NEVER pay back the taxpayers..Their stocks are way down from what they borrowed..
One thing I will say we would NEVER buy a GM or Cyrisler (how ever spelled) Actually we just bought a Honda a couple years ago and the valus holds up... I might consider a Ford one day..Not backed by the Government.. When has the Government done anything right??

October 31 2012 at 1:02 PM Report abuse +1 rate up rate down Reply

stop making the volt and save money. oh wait Obama won't let you

October 31 2012 at 12:53 PM Report abuse +2 rate up rate down Reply

All this praise for the guy who gave my money for the bailout? The media and a lot of people do not understand what Romney would have done. You won't let him give his answers.

October 31 2012 at 12:52 PM Report abuse rate up rate down Reply

How much money did the sherholders and bond holders loose on the GM " CON JOB ".I wouldn't
invest a penny in that company.Screwing these people was the ultimate betrayel of people and institutions
that kept that company afloat.

October 31 2012 at 12:51 PM Report abuse rate up rate down Reply