US corporate results round-up

GM cuts to aim for Europe breakeven

GENERAL Motors posted a surprisingly strong profit yesterday and said it was targeting a return to break-even levels in its European operations by the middle of the decade after a loss of as much as $1.8bn (£1.1bn) in that region this year. GM’s third-quarter net income attributable to common shareholders fell to $1.48bn, from $1.74bn a year earlier. GM said it expected a full-year operating loss of $1.5bn to $1.8bn in Europe, depending on the level of restructuring in the fourth quarter. Last year, it lost $747m in the region. GM said it would cut the shifts at its Opel plant in Germany next year.

MasterCard better than Wall St expected

MASTERCARD, the world’s second-biggest credit and debit card network, reported a quarterly profit that topped Wall Street estimates yesterday as more people across the globe opted to use cards instead of cash.

Cardholders made $676bn (£419.2bn) of purchases worldwide in the quarter on a local currency basis, translating to a rise of 12 per cent.

The company said net income rose eight per cent to $772m, from $717m a year earlier.

Revenue rose five per cent to $1.92bn, but fell short of the $1.94bn analysts had expected.

Garmin beats on profit and ups forecast

SATELLITE navigation maker Garmin’s quarterly profit trumped analysts’ estimates yesterday, boosted by strong demand for dog-tracking and golf gadgets, but the firm raised its full-year forecast only modestly.

Garmin’s third-quarter profit fell to $140.3m (£87m) from $150.4m a year earlier. Total revenue rose one per cent to $672m. Analysts on average had estimated revenue of $660.9m.

Garmin pointed out that the Americas, EMEA and Asia Pacific had all recorded growth in the year to date.

Garmin has recently tried new strategies such as bundling its devices with high-margin mapping services.

Weak US demand hits MGM Resorts

CASINO operator MGM Resorts International posted a larger loss and missed analysts’ expectations yesterday due to a steep drop in its third-quarter tax benefits and weak demand in the United States. MGM Resorts reported a tax benefit of $2.6m for the third quarter, significantly below the previous-year number of $79.7m. The company, which has been aggressively chasing growth in China, said revenue from MGM China grew seven per cent in the third quarter. However, hurt by a decline in its US business, overall third-quarter revenue rose just one per cent to $2.25bn, missing analysts’ average estimate of $2.28bn.