General Motors recorded a profit of $2.5 billion for the second quarter this year, nearly doubling the $1.3 billion profit that the company achieved in the same period last year. This is the company’s sixth consecutive quarterly profit since mid-2009 when it exited bankruptcy. Revenue increased 19 percent to $39.4 billion.
Chief Executive Officer Dan Akerson commented that the investments of the company in design, quality and fuel economy are paying off all over the world as its international market share gain and financial results bear out.
The company’s net income from North American operations was $2.2 billion, a 41 percent increase from the second quarter of 2010. The company’s struggling European subsidiary reported a $102 million net profit, offsetting the $160 million loss it incurred a year earlier.
When asked why it sees regional earnings as net rather than earnings before interest and taxes, the company explained that taxes and interest are recorded centrally at the corporate level, thus, "there are no reconciling items" between regional EBIT and net attributable to shareholders.
The company further stated that "based on current industry outlook," it forecasts its earnings for the last six months of this year to be "modestly lower" than in the first six months.
First-half net amounted to $5.4 billion. At the end of the quarter, the company had automotive cash and marketable securities of $33.8 billion, an increase of 10 percent from the end of the first quarter.
The company’s chief financial officer, Dan Ammann, disclosed that stronger pricing contributed around $1 billion to profits, before taxes and interest. He added that they are able to lower incentive and increase prices, which highlights the value that customers see in these products.