GM’s Second-Quarter Earnings Slip 4%

General Motors Co. reports its income from continuing operations dipped to $2.4 billion from $2.5 billion in the second quarter.

The company also lowered its outlook for the second half of 2018, citing “uncertain and volatile” trade issues.

GM’s second-quarter operating income dropped by one-third to $1.5 billion from $2.3 billion. Earnings before interest and taxes fell 14% to $3.2 billion. Results reflect a pre-tax charge of $200 million for restructuring the company’s operations in South Korea.

Unit sales from continuing operations were flat at 2.1 million cars and trucks in the second quarter. Net revenue slipped less than 1% to $36.8 billion. GM says costlier sales incentives and a leaner mix for its current-generation large pickup trucks offset strong demand for its next-generation Chevrolet Traverse and GMC Terrain SUVs.

In North America, net revenue was virtually flat at $28.5 billion. Adjusted EBIT dropped 23% to $2.7 billion. Unit sales advanced 4% to 912,000 vehicles.

GM’s international operations saw second-quarter revenue drop 13% to $4.8 billion. EBIT skidded to $100 million from $300 million on unfavorable currency rates in South America. Wholesales advanced 2% to 1.2 million, as a 6% gain in China offset a 12% decline elsewhere.

GM Financial reported record second-quarter revenue of $3.5 billion, up $500 million. Adjusted earnings before taxes surged to a record $500 million. But GM cautions that second-half results will weaken because of reduced used-car prices and an upswing in vehicles coming off lease.