On Wednesday, share prices of General Motors Company (NYSE:GM) rose sharply, even though the third quarter has been very bad for the company. The profit decreased in that quarter, by 14 percent. The company has been seeing a rise in their shares due to the good response which they received from South America, and a slightly better performance in Europe. The Detroit based company has not been doing so well in Europe and North America, as a result of which, their total profit, during the third quarter (July to September this year) fell from $1.73 billion to $1.43 billion. However, South America is one place where the company saw positive results, and internationally (outside China), the company has been doing well.
The company got good results from four units, out of the five, and despite a worse third quarter than the one last year, the company is still happy because the results showed that its plans of expansion, and its plans to fix up areas of low business with new strategies, have lead to good results. The company earned $1.03 from each share last year. As compared to that, the company has only been earning 89 cents this year, but the revenue has grown by 2 percent from last year, to stand at $37.6 billion this year. If one is to discount the one-time items, the company has earned about 93 cents with each share. This has exceeded the Wall Street prediction of 60 cents.
On Wednesday, the company saw the rise of share prices by $2.22 or 9.53%, to $24.34. The company has been faring quite well in South America, South Korea and Australia, amongst other countries. The international expansion and profitability of the company seems to be growing. General Motors says that the predictions for the fourth quarter are more or less the same as the same quarter last year. The company is hopeful, even that it shall break even in the case of Europe. New models, however, have lead to the company earning $144 million, from the initial $44 million in South America. How to deal with the taut European economy is still an issue with the company, though.