General Motors Corp. announced that its second quarter earnings were up by just under one percent, to $1.75 billion. Continued strong sales were offset in part by development costs for new vehicles, and e-commerce investment.
GM earned $2.93 a share, compared to $1.73 billion, or $2.66 a share, in the second quarter of 1999.
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Revenues totaled $48.7 billion, a gain of 8 percent over last year’s second quarter total of $45 billion.
A large percentage of earnings were from its North American auto business, despite a decline in profits of 5 percent, from $1.48 billion to $1.41 billion.
European earnings were also down 11 percent, from $187 million in the second quarter of 1999 to $166 million this year.
The company’s Asia Pacific division saw its losses grow 52 percent, from $81 million to $123 million, due to losses at Japanese automaker Isuzu, of which GM owns 49 percent. GM’s Latin America/Africa/Mid-East business turned a $10 million profit after reporting a $38 million loss last year.
GM’s other divisions posted improved results. The GMAC finance business earned $395 million, an increase of $4 million. Losses at Hughes Electronics decreased 30 percent, from $92 million to $64 million, mainly due to growth in its DirectTV satellite service.
GM also said its other divisions, including Allison transmissions and GM Locomotive, cut their losses 62 percent, from $116 million to $44 million.
For the first six months of 2000, GM’s profits are down 0.5 percent, from $3.55 billion to $3.53 billion. That’s despite a 9 percent increase in revenues, from $87.5 billion in the first half of 1999 to $95.6 billion this year.
