GM Pulls Down Record $3.1 Billion EBIT in Q3 2015
General Motors reported its third-quarter financials on Tuesday, revealing the automaker’s largest quarterly pretax operating profit since 2009. While net income was down 1.4% at $1.36 billion, earnings before interest and tax (EBIT) was up 37% at a total of $3.1 billion.
That, as well as the EBIT-adjusted margin of 8%, were both all-time records.
“These results reflect our work to capitalize on our strengths in the US and China, while taking decisive, proactive steps to mitigate challenges elsewhere,” said GM CEO Mary Barra. “GM is a vastly different company today than just five years ago. We’re building a strong foundation, driving earnings growth in our core business and executing a plan to lead the future of personal mobility, all with the aim of creating shareholder value for years to come.”
Net revenue for Q3 2015 totaled $38.8 billion, down from $39.3 billion from Q3 2014. GM attributes the negative change to the impact of dipping foreign currency exchange rates, adding that had these exchange rates maintained from 2014, revenue would have been up $2.3 billion.
GM also reported a 26% return on invested capital (up from 14% in Q3 2014), and automotive next cash flow from operating activities was up to $2.6 billion from approximately $700 million in Q3 2014.