General Motors Co.
) recorded adjusted earnings of $1.6 billion or 96 cents per
share in the third quarter of 2013, beating the Zacks Consensus
Estimate of 91 cents per share. In comparison, the company
generated earnings of $1.6 billion or 93 cents per share in the
third quarter of 2012.
Including a net loss of $0.9 billion or 51 cents per share
from special items in the reported quarter, net income (on a
reported basis) amounted to $0.7 billion or 45 cents per share,
compared with $1.5 billion or 89 cents per share in the year-ago
All the businesses, except International Operations, performed
well during the quarter.
Revenues in the quarter grew 3.7% year over year to $39
billion, beating the Zacks Consensus Estimate of $38.7
Worldwide wholesale unit sales inched up 0.5% to 1.6 million
vehicles in the quarter. Worldwide retail unit sales rose 5.5% to
2.4 million vehicles. The automaker occupied a worldwide market
share of 11.7% at the end of the quarter, marginally up from
11.6% a year ago.
Adjusted earnings before interest and tax (EBIT) went up 13%
to $2.6 billion from $2.3 billion in the third quarter of 2012.
Operating profit surged 40.7% to $2.3 billion from $1.6 billion a
GM North America (GMNA) reported a 5.2% rise in revenues to
$23.5 billion during the quarter. Adjusted EBIT increased 29.4%
to $2.2 billion from $1.7 billion in the third quarter of
GM Europe (GME) witnessed a 3.3% increase in revenues to $4.9
billion. The region showed improvement as it reported a narrower
year-over-year adjusted loss of $0.2 billion compared with $0.5
billion in the year-ago quarter.
GM International Operations (GMIO) results were disappointing.
It reported a 6.8% decline in revenues to $5.3 billion. Adjusted
EBIT plunged 62.5% to $0.3 billion from $0.8 billion in the
comparable quarter of 2012.
GM South America (GMSA) witnessed a 2.5% increase in revenues
to $4.4 billion. Adjusted EBIT increased to $0.3 billion in the
quarter compared with $0.2 billion in the third quarter of
GM Financial reported an impressive 68.7% rise in revenues to
$867 million during the quarter. EBIT in the segment stayed in
line with the year-ago quarter level of $0.2 billion.
GM had cash and cash equivalents of $20.4 billion as of Sep
30, 2013 compared with $18.4 billion as of Dec 31, 2012. Total
debt (Automotive and Financial) increased significantly to $32.1
billion as of Sep 30, 2013 from $16.1 billion as of Dec 31, 2012.
Consequently, debt-to-capitalization ratio increased to 46.6% as
of Sep 30, 2013 from 30.7% at the end of 2012.
During the third quarter, the company had a net cash flow of
$3.3 billion from automotive operations, up from $3.1 billion in
the year-ago period. After deducting $1.9 billion of capital
expenditure in both the reported and the year-ago quarter, the
company's free cash flow stood at $1.3 billion during the quarter
compared with $1.2 billion a year ago.
GM is a leading global automotive company. The company has
presence in almost 120 countries and has facilities located in 30
countries. It currently retains a Zacks Rank #2 (Buy).
Ford Motor Co.
) posted a 12.5% rise in earnings per share of 45 cents in the
third quarter of 2013, up from 40 cents in the same quarter of
2012 (all excluding special items). With this, the company has
beaten the Zacks Consensus Estimate of 38 cents. The business in
most geographic regions improved during the quarter.
Other major automobile stocks worth considering are
Honda Motor Co., Ltd.
). While Daimler is a Zacks Rank #1 (Strong Buy) stock, Honda
carries a Zacks Rank #2 (Buy).
DAIMLER AG (DDAIF): Get Free Report
FORD MOTOR CO (F): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis
HONDA MOTOR (HMC): Free Stock Analysis Report
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