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GMAC POSTS 1993 THIRD QUARTER RESULTS

    DETROIT, Oct. 27 /PRNewswire/ -- General Motors Acceptance Corporation's consolidated net income totaled $205 million for the third quarter of 1993, after absorbing the cumulative impact of the recently enacted one percentage point increase in the federal income tax rate (retroactive to Jan. 1, 1993) which reduced third-quarter consolidated net income by $29 million.  In the third quarter of 1992, GMAC earned $297 million.
    "GMAC third-quarter results reflect today's intensely competitive automotive financing environment in North America as well as previously implemented strategies to strengthen our liquidity position," Chairman Robert T. O'Connell stated.  "GMAC is better positioned now to aggressively compete in all three sectors of our business -- worldwide automotive financing and leasing, insurance and mortgage finance."
    In the third quarter, net income from financing operations, including mortgage results and the cumulative impact of the federal income tax rate increase, totaled $166 million.  Financing operations earned $245 million during the same period in 1992.  The 1993 third quarter income also reflects lower asset levels, tighter interest rate margins and less income from receivable sales.
    Insurance operations generated net income of $39 million in the third quarter of 1993 compared with $52 million a year ago.  The year- to-year decrease reflects unfavorable underwriting results.
    For the first nine months of 1993, GMAC's consolidated net income, including the impact of the federal income tax rate increase, totaled $774 million, compared with $928 million a year earlier.  The 1992 results exclude a $283 million unfavorable charge against first quarter earnings resulting from the implementation of SFAS No. 106, Employers' Accounting for Postretirement Benefits Other than Pensions.
    In the third quarter, GMAC financed or leased 29 percent (or 328,000) units of new General Motors vehicles sold in the United States, compared to 28 percent in the second quarter of 1993 and 38 percent (or 422,000) units in the third quarter of 1992.  Outside the United States, 133,000 new vehicles were financed or leased during the third quarter, versus 135,000 a year ago.  Reflecting increased refinance activity, GMAC Mortgage Corporation loan purchases and originations totaled $5.2 billion in the third quarter, $900 million greater than in the same period a year ago.
    -0-             10/27/93
    CONTACT:  Lynda Kosinski of GMAC, 313-556-1022
    (GM) CO:  GENERAL MOTORS ACCEPTANCE CORPORATION IN:  AUT FIN SU:  ERN ST:  MI


-- DE011 -- X412 10/27/93
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Publication:PR Newswire
Date:Oct 27, 1993
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