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25 July 2017
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GM (The Total Investment & Insurance Solutions)
General Motors' second-quarter net profit fell more than 40 percent as
the company lost money on the sale of its European unit and took charges for
restructuring in India and selling its business in South Africa. The Total Investment & Insurance
Solutions
The company posted net income of $1.66 billion, compared with a record
$2.87 billion a year ago. But when the European loss and one-time items are
stripped out, GM still made $2.4 billion from continuing operations, or $1.89
per share. That's down 12 percent from last year but still easily beat Wall
Street estimates. Analysts polled by FactSet expected only $1.68 per share.
Revenue was $37 billion excluding Europe, falling short of analyst
estimates of $40.3 billion.
Chief Financial Officer Chuck Stevens called it a strong quarter with
pretax earnings of $3.7 billion. That's down $100 million from a year ago, due
largely to a $270 million drop in North America that Stevens attributed to
production cuts as the company ramps up to launch new Silverado and Sierra
full-size pickup trucks. The Total
Investment & Insurance Solutions
GM's bottom line includes a $770 million loss as GM prepares for the
sale of its European Opel and Vauxhall brands to France's PSA Group, owner of
Peugeot and Citroen. It also includes $654 million in one-time items from
restructuring in India, the sale of GM's South Africa business and lingering
legal costs from an embarrassing ignition switch recall. Stevens said the sale
to PSA is on track to close by the end of the year. The Total Investment & Insurance Solutions
Pretax profits in North America, GM's most lucrative region, fell 14
percent for the quarter to $3.48 billion. But profits in International
Operations, including China, nearly doubled to $340 million. GM also narrowed
its loss in South America from $118 million to $23 million. Profits at its
loan-making unit rose 67 percent to $357 million. The Total Investment & Insurance Solutions
GM made a strong profit in the U.S. even though sales were down 4
percent for the quarter. That's because much of the sales drop came from
lower-profit cars, which were down 19 percent. Truck and SUV sales rose 3
percent, and that pushed up GM's average sales price per vehicle up 3 percent
to $39,118, according to Edmunds.com. The
Total Investment & Insurance Solutions
Shares of GM rose just over 1 percent to $36.25 in premarket trading
Tuesday.The Total Investment &
Insurance Solutions
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