General Motors (GM) beat analysts’ third quarter earnings expectations, but the company continues to struggle in Europe and investors are punishing the stock this morning. Shares fell 9.3% in early trading.
GM posted $1.03 of EPS, 4 cents better than expectations. Revenue came in at $36.7 billion, in line with analysts’ expectations. Higher materials prices and other costs squeezed the company’s net inome in the quarter, as EPS fell from $1.20 a year ago. The company’s worldwide market share, however, rose to 12% from 11.4% a year ago.
Chairman and CEO Dan Akerson called the results “solid” in a statement, but he doesn’t think that’s good enough.
�GM delivered a solid quarter thanks to our leadership positions in North America and China, where we have grown both sales and market share this year.� But solid isn�t good enough, even in a tough global economy,� Akerson said. ��Our overall results underscore the work we have to do to leverage our scale and further improve our margins everywhere we do business.�
The company is having trouble selling cars profitably in Europe. GM lost $292 million in Europe. GM had said it could break even in Europe this year, but it is no longer confident in those expectations because of “deteriorating economic conditions.”
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