Mexican Media Brands
GM Posts 2% Profit Gain as Revenue Dips
General Motors Co. boosted its net income in the second quarter 2% to $2.4 billion, as revenue slipped 2% to $36.1 billion.
#economics
Share
General Motors Co. boosted its net income in the second quarter 2% to $2.4 billion.
The company’s operating income for the period surged by two-thirds to $2.5 billion. Unit sales fell 6% to 1.94 million cars and trucks. But a richer sales mix, led by strong demand for crossover vehicles and fullsize pickup trucks in the U.S., caused net revenue to slip only 2% to $36.1 billion.
GM emphasizes that it has a “cadenced” plan to fortify its truck sales with a parade of new iterations. The company also notes that layoffs and plant closures are expected to save $1.1 billion this year.
The company’s adjusted pretax earnings shrank 6% to $3 billion in April-June. An 11% gain to $3 billion in EBIT in North America was offset by weak results by overseas operations and the company’s GM Cruise autonomous vehicle subsidiary. Quarterly pretax earnings by GM Financial were flat as revenue climbed 3% to a record $3.6 billion.
GM reports that its factory sales to dealers dropped 6% to 1.13 million cars and trucks in the second quarter. During the same period, retail/fleet sales declined in all three of the company’s major markets: North America (-4% to 875,500 units), China (-12% to 753,900) and South America (-1% to 162,500).
GM affirms its earlier guidance for full-year results of earnings between $6.50 and $7 per share, compared with $3.04 in the first half. The company anticipates an adjusted free cash flow from automotive operations of $4.5 billion-$6 billion.
RELATED CONTENT
-
On Headlights, Tesla's Autopilot, VW's Electric Activities and More
Seeing better when driving at night, understanding the limits of “Autopilot,” Volkswagen’s electric activities, and more.
-
Porsche Doubles EV Target for 2025
Porsche AG says about half the vehicles it sells by 2025 will be equipped with hybrid or all-electric powertrains, twice the ratio it forecast four weeks ago.
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.