GM overcomes huge recall costs to post healthy 3Q profit

DETROIT (AP)

General Motors’ third-quarter profit fell slightly, but the company rode strong North American sales to overcome $1.5 billion in costs from its deadly ignition switch recall. Its shares rose almost 4 percent in premarket trading Wednesday.

The Detroit automaker’s net income slipped 1.4 percent from a year ago, but still was $1.36 billion, or 84 cents per share. That compares with $1.38 billion, or 81 cents per share, a year ago.

Without the recall costs, GM would have made a $1.50 per share, soundly beating Wall Street expectations. Analysts polled by FactSet expected $1.18 per share.

The company posted a record $3.3 billion pretax profit in North America, more than offsetting a small decline in China and a loss in South America.

The news pushed GM shares up 4.5 percent, or $1.52, to $35 in premarket trading about an hour before the markets opened Wednesday.