General Motors has announced second quarter net income up 89% year on year to US$2.5bn, or $1.54 per share, the restructured, post-bankruptcy automaker’s sixth consecutive profitable quarter. Revenue increased $6.2bn to $39.4bn and adjusted earnings before interest and tax (EBIT) were $3bn compared with $2bn in Q2 2010. There were no special items in either period. GM Europe returned to positive adjusted EBIT, too.
“GM’s investments in fuel economy, design and quality are paying off around the world as our global market share growth and financial results bear out,” said chairman and CEO Dan Akerson in a statement. “Our progress has been steady and we’re preparing to launch more new products this year…to keep the momentum going.”
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GM North America (GMNA) reported EBIT-adjusted of $2.2bn, a year on year improvement of $0.6bn.
GM Europe (GME) reported EBIT-adjusted of $0.1bn, up $0.3bn. In Q2 2011, the unit booked restructuring costs of about $100m, approximately $200m less than a year before.
GM International Operations (GMIO) reported EBIT-adjusted $0.6bn, up $0.1bn.
GM South America (GMSA) booked EBIT-adjusted of $0.1bn, down $0.1bn.
For the quarter, automotive operating cash flow was $5.0bn and automotive free cash flow $3.8bn.
GM said it ended the quarter with “very strong total automotive liquidity of $39.7bn”.
It expects EBIT-adjusted for the second half of 2011 will be “modestly lower” than in the first half and that full-year EBIT-adjusted “will show solid improvement over 2010”.
“Our earnings and cash flow are solid and we’re going to keep working on the fundamentals of strong brands, great products and operating leverage to create profitable growth around the world,” said CFO Dan Ammann in the statement.
