GM reports US$2b profit

Strong profits on new cars and trucks helped General Motors (GM) Company earn US$2 billion in the third quarter, enhancing the company's appeal as it nears next week's initial public stock offering.

The third-quarter earnings of US$1.20 per share nearly match what GM made in the first two quarters of the year combined, aided by profits from overseas and healthy revenue from North America, the company said Wednesday.

The earnings were boosted by higher prices from newly introduced models such as the Buick LaCrosse, a midsize luxury sedan.

They also were another indication of a widespread recovery among global automakers. Toyota, Honda, Nissan, Chrysler and Ford all reported improved results in the most recent quarter as auto sales slowly rise.

The strong quarter meant that GM met projections it made a week ago that net income for the quarter would be US$1.9 billion to US$2.1 billion.

It was the third straight profitable quarter for GM, which needed US$50 billion in US government aid to make it through bankruptcy protection last year. The company has repaid or plans to repay taxpayers US$9.5 billion, and the government hopes to get back the remaining US$40 billion with the November 18 common stock offering and several follow-up sales.

The latest results reversed a US$908 million loss, or 73 cents per share, in the third quarter of last year, a short quarter for GM because it spent the first nine days in bankruptcy protection.