GM has $ 2 billion 3Q, IPO seems golden

General Motors is free of bankruptcy woes and back on top, reports Reuters. 2 billion dollars in 3rd-quarter earnings (and a $ 1.20 earnings per share boost) back this up for GM. Thanks to this success, General Motors is optimistic that next week’s first public offering of stock will also trend well.

Since bankruptcy, General Motors hasn't been as good as the $2 billion 3Q profit

Since emerging from bankruptcy in July 2009, $2 billion in profits is the most successful quarter GM has had. When sales incentives were no longer used, the profit margin was able to go up. It also helps that the operating costs have lowered. Recent results certainly put a good shine on the automaker’s upcoming $13 billion IPO. Reuters explains that since 2004, the business might be profitable for the first time with 2010 profits.

In North America, cash earnings for General Motors have increased within the third quarter of 2010 for the 3rd consecutive quarter. There aren't numerous sales internationally though. GM CEO Dan Akerson has seemed concerned since General Motors is losing so much to Europe.

“We still need to fix Europe," he said in a statement. "We continue to be vigilant in reducing cost in the enterprise, and we have just began doing a better job in marketing our brands to consumers.”

Getting some investors

The automakers IPO has caused GM to cut costs and get Europe ready for a future growth market as part of a sales pitch. There could be offered both common and preferred shares. The plan is that 43 percent rather than the current 61 percent could be owned by the U.S. Treasury after this.

What the fourth quarter will show

The fourth quarter for GM with the Chevrolet Cruze coming out should be productive. In fact, the Honda Civic and Toyota Corolla have some major competition. Reuters explained that General Motors should be able to stay as the top-earning U.S. automaker since the Cruz will help so much. There had been a $1.7 billion profit made by Ford in the 3rd quarter getting them into second place. Chrysler on the other hand had an $84 million net loss putting it at the end of the line.

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Information from

ABC News

abcnews.go.com/Business/wireStory?id=12106358

FOX Business coverage of GM 3Q profit

youtube.com/watch?v=GcEekJp6490