DETROIT (AP) — Another solid quarterly performance at General Motors brought the strongest talk yet of the automaker paying a dividend for the first time in five years, or perhaps buying back stock.
GM on Wednesday reported pretax profit of $2.64 billion for the third quarter, up almost 15 percent over a year ago. Earnings grew in North America, South America and China and losses narrowed in Europe.
Chairman and CEO Dan Akerson said on a conference call that the board knows that shareholders want the best possible return on their investment. "We understand what we're here for, and one of them is to return money to our shareholders," he said, without giving a specific time frame.
GM eliminated its common stock dividend in July 2008, as the company's finances deteriorated. It filed for bankruptcy protection in 2009.
Crosstown rival Ford Motor Co. also stopped paying a dividend five years ago. But Ford resumed the payout in 2012, and doubled it to 10 cents in this year's first quarter. That makes Ford stock more attractive than GM to many investors.
GM's strong third-quarter performance was masked a bit by $900 million worth of one-time items that brought net income down 53 percent from a year ago. Net income totaled $698 million, or 45 cents per share. That compares with $1.48 billion, or 89 cents per share, a year ago. Without one-time items and after paying taxes, GM earned $1.7 billion, or 96 cents per share. Analysts polled by FactSet expected 94 cents per share.
GM has now been profitable for 15 straight quarters.
Revenue rose 4 percent to $39 billion, just short of Wall Street's estimate of $39.2 billion.
Investors viewed the results favorably. GM shares rose $1.20, or 3.3 percent, to $37.26 in afternoon trading.