General Motors has announced preliminary financial results for the third quarter that point to significant profit and have created the conditions for the start of its IPO.
GM said that for the third quarter, ending September 30, 2010, the company expects to generate:
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- Revenue of approximately $34 billion
- Net income attributable to common stockholders of $1.9-$2.1 billion and
- Earnings before interest and taxes (EBIT) of $2.2-$2.4 billion
For the first nine months of the year, GM estimates:
- Revenue of $99 billion
- Net income attributable to common stockholders of $4.0-$4.2 billion and
- EBIT of $6.0-$6.2 billion
The company also announced it expects to generate positive EBIT in the fourth quarter, albeit at a significantly lower run rate than each of the first three quarters, due to the fourth quarter having a different production mix, new vehicle launch costs (in particular the Chevrolet Cruze and Volt) and higher engineering expenses for future products.
“We are extremely pleased with the level of progress the company is making,” said Chris Liddell, GM vice chairman and chief financial officer. “We will deliver a solid and profitable first year post-bankruptcy, and we are continuing to improve our balance sheet and most importantly, the quality of our vehicles.”
GM will release details of its third quarter results on Wednesday, November 10, 2010 at 7:30 a.m. ET
