GM Tops Estimates Despite Loss in Europe
DETROIT (TheStreet) -- GM (GM) said its second-quarter net income fell by $1 billion as it lost $361 million in Europe, but the automaker still beat analysts' estimates.
Net income was $1.49 billion, or 90 cents a share. Analysts surveyed by Thomson Reuters had estimated 74 cents. Revenue declined 4% to $37.6 billion. Analysts had estimated $38.6 billion.
In the same quarter a year earlier, net income was $2.54 billion, or $1.54 a share, on revenue of $39.4 billion. The revenue decline "was due almost entirely to the strengthening of the U.S. dollar versus other major currencies," GM said.
"Our results in North America, (Asia) and at GM Financial were solid but we clearly have more work to do to offset the headwinds we face, especially in regions like Europe and South America," said CEO Dan Akerson, in a prepared statement. "Despite the challenging environment, GM has now achieved 10 consecutive quarters of profitability, which is a milestone the company has not achieved in more than a decade."
Earnings before interest and tax adjusted were $2.1 billion, compared with $3 billion a year earlier.
GM North America reported EBIT-adjusted earnings of $1.97 billion, down from $2.25 billion in the same quarter a year earlier. GM Europe reported an EBIT-adjusted loss of $361 million, compared with a gain of $102 million a year earlier. GM's international operations, operating in Asia, reported EBIT-adjusted of $557 million, down slightly from $573 million. GM South America reported a loss of $19 million, compared with a year-earlier gain of $57 million. GM Financial's EBIT was $217 million, up from about $144 million.
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