Although General Motors has posted a third quarter loss of almost US$3bn due to charges related to the sale of its European operations, its underlying performance showed it is in profit.

GM said that in the third quarter it was profitable in all business segments for the first time since Q4 2014. However, the bottom line was dented by a 42% drop in earnings in North America to US$2.068bn.

GM lost US$2.981bn in the third quarter of 2017, but charges related to the sale of Opel/Vauxhall in Europe were booked at over US$5bn. If they are excluded, GM made net income of US$115m, which compares with net income of US$2.8bn in the same quarter of last year.

“We delivered solid results even with planned, lower third-quarter production in North America,” GM chief Mary Barra said in a statement. “We are managing the business with discipline to drive strong performance today, while investing in higher-return opportunities, including those that will shape the future of transportation.”

GM had warned the third quarter would weak because of downtime at US plants and special costs related to the sale of its European operations (Opel/Vauxhall) to PSA Group.

GM’s revenue from continuing operations in Q3 totalled US$33.6bn, down 13.5% from last year. The company said its adjusted pre-tax earnings totalled US$2.5bn, down 31.1% on last year’s pace.

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GM’s international operations made US$300m and it made US$100m in South America (reversing losses last year) during Q3. In China, GM deliveries of 982,311 vehicles set a third-quarter record, up 12.3 % versus the third quarter of 2016.

Planned downtime in North American operations, including six weeks in full-size truck plants, contributed to reduced wholesale volume of 268,000 units, or 26% compared to Q3 2016. However, that lowered inventory by 160,000 units to 821,000 as of September 30, compared to June 30.

“Solid performance in all operating segments led to a very good quarter,” Chuck Stevens, GM chief financial officer, said in a statement. “With an aggressive vehicle launch cadence through the fourth quarter, and an ongoing intense focus on costs, we project strong results through the end of the year.”

GM said it continues to build sales momentum in high-demand crossover segments of the US market. Following the recently launched Chevrolet Equinox and Traverse, GM launched two more new crossovers in the US in the third quarter — the Buick Enclave and GMC Terrain. Altogether this year, GM has introduced five new models in the crossover segment, ‘allowing GM to continue capitalising on the growing shift in consumer preference for utility vehicles,’ it said.