GM’s Net Income Plunges 42%

General Motors Co.’s net income for April-June fell to $1.7 billion from $2.9 billion in the same period last year. Adjusted earnings before interest and taxes declined 4% to $3.7 billion.

Results reflect some $1.3 billion in special items related to the pending sale of its European operations and restructured businesses in India and South Africa. Second-quarter Income from continuing operations dropped 11% to $2.4 billion.

But earnings per share from continuing operations of $1.89 easily surpassed Wall Street’s estimates of $1.69 per share. It was the company’s ninth consecutive quarter of better-than-expected results. CEO Mary Barra credits the performance to a “disciplined and relentless focus” on business performance.

GM’s revenue from continuing operations for the period slipped 1% to $37 billion. The company’s worldwide retail sales dipped to 2.34 million vehicles from 2.39 million units in the same period of 2016.

North American operations saw pretax earnings for the second quarter fall 7% to $3.5 billion. Unit sales declined 3% to 879,000 units. Revenue for the region shrank 6% to $28.4 billion.

The company says it plans to cut production in North America 15% in the second half of 2017 by eliminating 150,000 units, including 40,000 pickup trucks. The reduction aims to bring dealer inventories in the U.S. down to a near-normal 70-day supply by year-end from the current 106-day supply.

In China, GM’s second-quarter unit sales rose 2% to a record 852,400 passenger vehicles. Sales in South America jumped 18% to 160,500 units. Deliveries in Europe dropped 9% to 303,800 vehicles.