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GM More than Doubles Second-Quarter Profits
General Motors Co. reports its net income in the second quarter of 2016 zoomed to $2.9 billion from $1.1 billion in the same period last year, even though wholesales were flat at 2.4 million cars and trucks.
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General Motors Co. reports its net income in the second quarter of 2016 zoomed to $2.9 billion from $1.1 billion in the same period last year, even though wholesales were flat at 2.4 million cars and trucks.
Revenue climbed 11% to an any-quarter record $42.4 billion. Earnings before interest and taxes jumped by one-third to a record $3.9 billion.
GM attributes the stellar performance to strong retail demand for high-profit trucks and SUVs, and continuing efforts to improve efficiencies worldwide. The company now expects full-year per-share earnings between $5.50 and $6, up 25 cents from its previous guidance.
In North America, the company’s EBIT rose to a record $3.6 billion from $2.8 billion in April-June. Net revenue expanded 14% to $30.2 billion, and wholesales grew 14% to slightly more than 1 million vehicles.
In Europe, GM eked out a positive EBIT of $137 million for the period, reversing a $45 million loss a year earlier. Wholesales climbed 8% to 326,000 vehicles. Net revenue in the region improved 8% to $5.4 billion.
In South America, second-quarter revenue fell to $1.6 billion from $2.1 billion a year earlier. GM’s adjusted EBIT was unchanged at a negative $100 million. Wholesales dropped 7% to 133,000 units, mainly because of a slump in Ecuador. But GM’s market share in South America gained 0.3 points to 15.3%.
GM’s operations elsewhere saw second-quarter net revenue fall to $2.8 billion from $3.1 billion last year. Wholesales excluding China were flat at 140,000 units. In China, income was unchanged at $500 million, but wholesales by GM’s joint ventures grew by 24,000 units to 861,000 vehicles.
GM Financial reports a jump in net revenue of more than 50% to a record $2.3 billion. The unit’s net income in April-June advanced 2% to $189 million.
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