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General Motors Earnings Fall 41% Better Than Expected


General Motors said Thursday its second-quarter profit fell 41 percent as losses in Europe and South America cut into strong North American earnings.

Still, the company’s earnings report beat expectations, and its stock rose in pre-market trading. GM said it earned $1.5 billion from April through June, $1 billion less than its $2.5 billion net income a year earlier. GM earned 90 cents per share compared with $1.54 a year earlier. Revenue fell 5 percent to $37.6 billion.

The company beat Wall Street expectations. Analysts polled by FactSet expected earnings of 75 cents per share.

GM lost $361 million before taxes in Europe, compared with a $102 million profit a year earlier. Even North America showed a little weakness. Pretax profits fell nearly 13 percent to $1.8 million.

In the previous quarter, the company’s net income fell sharply, hurt by losses in Europe and a big accounting charge. But those results beat Wall Street estimates and GM turned in a strong performance in North America.

Source: CNBC.com