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GM Has Profit After Big Loss a Year Ago

Market News
AP
GM Has Profit After Big Loss a Year Ago
Tuesday July 31, 7:43 am ET
By Tom Krisher, AP Auto Writer
GM Reports 2Q Profit of $891M in Contrast to Big Loss a Year Ago, Beats Street Expectations

DETROIT (AP) -- General Motors Corp. reported a second-quarter profit of $891 million on Tuesday, a huge reversal from the $3.4 billion loss it posted in the same period last year.
It was the third straight quarterly profit for the nation's largest automaker, which cited improved sales, especially in growing markets worldwide.

The profit amounted to $1.56 per share for the April-June period in contrast to a loss of $5.98 per share in the year-ago period.

"Our heavy commitment to key growth markets around the world really paid off in strong growth and earnings," Chairman and Chief Executive Rick Wagoner said in a statement.

The automaker, though, continued to lose money in its home market, North America, where it reported a net loss from continuing operations of $39 million.

The results surpassed Wall Street expectations.

The profit came despite $520 million in charges associated with the bankruptcy reorganization of Delphi Corp., GM's former parts arm, and other restructuring costs for GM's North American unit.

GM said its adjusted net income, excluding the special items, was $1.4 billion, or $2.48 per share.

Fifteen analysts polled by Thomson Financial predicted earnings of $1.13 per share, excluding special items.


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