General Motors’ second quarter net profit plunged US$1bn to $1.5bn, or $0.90 per share from $2.5bn, or $1.54, the previous year as the loss in Europe grew from an EBIT-adjusted $0.1bn in Q2 2011 to $0.4bn this year.
The strengthening of the US dollar was blamed for the Q2 2012 fall in net revenues to $37.6bn from $39.4bn.
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Earnings before interest and tax (EBIT) adjusted was $2.1bn, compared with $3.0bn. Total restructuring expense was $0.1bn.
“Our results in North America, our international operations and at GM Financial were solid but we clearly have more work to do to offset the headwinds we face, especially in regions like Europe and South America,” said GM chairman and CEO Dan Akerson.
“Despite the challenging environment, GM has now achieved 10 consecutive quarters of profitability, which is a milestone the company has not achieved in more than a decade.”
Segments
GM North America (GMNA) reported EBIT-adjusted profit of $2.0bn, compared with $2.2bn in the second quarter of 2011. GM Europe (GME) reported a loss of $0.4bn, compared with $0.1bn, GM International Operations (GMIO) reported EBIT-adjusted profit of $0.6bn, equal to Q2 2011.
GM South America (GMSA) reported breakeven results on an EBIT-adjusted basis, compared with EBIT-adjusted profit of $0.1bn the previous year.
GM Financial earnings before tax was $0.2bn for the quarter, compared with $0.1bn.
