General Motors Company today announced second quarter 2010 net income of US$1.3bn (earnings per share of $2.55) – its largest quarterly profit since 2004 – on revenue of $33.2bn. Earnings before interest and tax (EBIT) was $2.0bn.
First quarter net income was $1.07bn and EBIT was $1.82bn on revenue of $31.5bn. GM did not report second quarter 2009 earnings because it was in the midst of restructuring under US Chapter 11 bankruptcy protection.
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GM North America booked Q2 2010 EBIT of $1.6bn, up from $1.2bn in the first quarter. GM Europe posted a loss before interest and taxes of $0.2bn, an improvement of $0.3bn from the first quarter. GM International Operations posted EBIT of $0.7bn, down from $1.2bn in the first quarter.
Cash flow from operating activities was $3.9bn and after adjusting for capital expenditures of $1.1bn, free cash flow was $2.8bn. GM ended the second quarter with $32.5bn in cash and marketable securities, including funds in the Canadian Health Care Trust escrow.
“I am pleased with our progress on achieving our business objectives,” CFO Chris Liddell said in a results statement consisting of just four paragraphs. “We have delivered strong product, maintained cost discipline, progressed strategic initiatives such as restructuring Europe and acquiring AmeriCredit, and delivered two consecutive quarters of profitability and positive cash flow.”
For the first half to 30 June, GM reported EBIT of $3.86bn with GM North America in the black by $2.81bn and GM Europe booking a loss of $637m.
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By GlobalDataGlobal unit production totalled 2.26m units in the second quarter of 2010 and 4.34m units in the first half. Q2 and H1 output in 2009 was 1.53m and 2.87m, respectively.
Q2 2010 North American unit sales rose to 716,000 versus 657,000 the previous year; H1 volume was 1.28m versus 1.16m in 2009. GME sold 442,000 vehicles in the second quarter versus 474,000 in Q2 2009; the half year tally was down to 846,000 from 881,000 a year ago.
Worldwide unit sales were 2.15m units in the second quarter and 4.15m for the half year, up on the respective 2009 counts of 1.94m and 3.56m.
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