Net income has remained flat from the same quarter last year, however adjusted earnings before income and taxes (EBIT) have increased by 37 percent.
“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 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.”
The company managed to increase North America EBIT-adjusted margins from 9.8 percent to 11.8 percent, while cutting Europe-market losses in half. South America did not perform quite as well, resulting in a $200 million loss compared to break-even results in Q3 2014.
Despite Barra’s renewed focus on profitability and quality, the company is still paying for mistakes from years past. The latest quarterly results reflect a $900 million settlement reached with federal regulators to resolve a criminal inquiry related to the ignition-switch defect, along with $600 million spent settling related civil claims.
CFO Chuck Stevens suggests GM is on track to continue growth through the next several years, with double-digit gains in terms of earnings per share.
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