GM Profit More Than Doubles in Quarter

General Motors Corp.’s third-quarter earnings more than doubled, topping expectations, as its North American vehicle business rebounded on improved truck sales and lower costs.

The results were released Tuesday as a two-week strike by the Canadian Auto Workers, which challenges GM’s cost-cutting strategy, was sending ripples through the U.S. operations of the world’s largest auto maker.

General Motors Corp. reported profit from operations of $1.02 billion, or $1.23 a share, compared with profit from continuing operations of $396 million, or 39 cents, in the year-ago quarter.

GM was expected to earn 75 cents a share.

The figures exceeded expectations of industry analysts, who said the report shows GM is on the right track as it launches a crucial make-over of its aging model lineup.

“As they roll those new models out, GM’s per-vehicle profitability will continue to improve,” analyst Chris Cedergren said. “They still have a way to go, but they’re well on their way to reinventing themselves.”

After a gain of $253 million, or 34 cents a share, for reduction of a plant-closing reserve, GM posted net income of $1.27 billion, or $1.57 a share, up from $642 million, or 42 cents. Year-ago results include operations of Electronic Data Systems Corp., split off from GM in June.

This year’s after-tax gain resulted from GM’s decision to keep open its Wilmington, Del., assembly plant to build a new mid-size Saturn sedan. A low net income tax rate for the quarter added about 40 cents a share, said GM’s chief financial officer, J. Michael Losh.

Without those two unusual factors, GM would have earned about 83 cents.

Despite the better-than-expected performance, GM is expected to take an expensive hit in the fourth quarter if the strike in Canada is not settled soon. The CAW walked out against GM of Canada Ltd. on Oct. 2 in a dispute over GM’s right to contract out parts work to lower-cost, nonunion suppliers. Wall Street has strongly backed GM’s tough position.

On Tuesday, GM partially shut down six more parts plants in Mexico because of the effects of the Canadian strike.

No additional U.S. plant slowdowns or closures were announced, but more are expected the longer the strike continues. GM has already laid off workers at plants in Michigan, Ohio and New York state.

Shares of GM rose 25 cents to $52.125 on the New York Stock Exchange.

Ford Motor Co. is scheduled to report third-quarter earnings today.