GM Profit Drops 19%, But European Losses Shrink

General Motors Co. netted $1.2 billion (€909 million) in the second quarter of this year compared with $1.5 billion (€1.1 billion) a year earlier.

Quarterly revenue and vehicle sales both rose 4% to $39.1 billion (€29.6 billion) and 2.49 million units, respectively. The company's global market share slipped 0.1 point to 11.5%.

GM earnings before interest and taxes and excluding one-time items climbed 7% to $2.3 billion (€1.7 billion).

In North America, operating profit increased 5% year over year to $2 billion (€1.5 billion) in the April-June period. Revenue grew 9% to $23.5 billion (€17.8 billion). Vehicle sales advanced 7% to 880,000 units.

In Europe, GM narrowed its operating loss to $110 million (€83 million) in the second quarter from $394 million (€299 million) a year earlier. Revenue and vehicle deliveries both slid 7% to $5.2 billion (€3.9 billion) and 425,000 units, respectively.

The company warns that its European results may soften in the second half of 2013. But the unit is still expected to shrink its full-year loss from the $1.8 billion (€1.4 billion) deficit it recorded in 2012.

Operating earnings for the Asia Pacific, Africa and the Middle East unit plunged 64% to $228 million (€173 million) in the in the April-June period. Revenue dropped 11% to $5.3 billion (€4 billion) despite a 7% gain in sales to 925,000 vehicles.

GM says the weakening yen is allowing its Japanese competitors to slash prices in such markets as India and Australia.

South American operating earnings more than tripled to $54 million (€41 million) in the second quarter. Revenue rose 5% to $4.3 billion (€3.3 billion). Vehicle sales increased 3% to 262,000 units.