NEW YORK: General Motors (GM) last week posted a 12-percent drop in profit for the third quarter from a year ago, hit by losses in Europe, but said it expected to break even in the region by mid-decade.

GM, the largest US carmaker, reported third-quarter net income of $1.5 billion, well above Wall Street expectations, largely because of higher sales. Revenue rose 2.4 percent to $37.6 billion in the July to September quarter, sharply higher than the $35.7 billion expected by analysts.

For its troubled Europe operations, the company forecast a 2012 loss of between $1.5 billion to $1.8 billion, depending on the level of restructuring under way in the fourth quarter. GM Europe had an adjusted loss of some $500,000 in the third quarter, up from $300,000 a year ago. The company said it expected the full-year 2013 results to be “slightly better” than 2012, and break-even results were “targeted by mid-decade.”

The weak European results were partly offset by improved performances in international and South America businesses.

In North America, the carmaker reported better-than-expected $1.8 billion earnings before interest and taxes, down from $2.2 billion a year earlier.

“GM had a solid quarter because customers around the world love our new vehicles, and we’re also seeing green shoots take hold on tough issues like complexity reduction, pensions and Europe,” said GM Chairman and chief executive Dan Akerson.